Thursday, July 1, 2010

Note on Income Tax

As citizens am sure we all pay tax in one or the other way. What does this Tax actually mean?

Let us understand this today.

The Central and State government spends a lot of money on some basic amenities like health, education, defense of the country, maintenance of Law and order etc.. To meet all these expenses, government collects money from the people from different sources, the most important of it is Tax. There are different types of taxes like: income tax, sales tax, wealth tax, gift tax, excise and custom duty tax, etc.. all these taxes are proposed, enhanced, or decreased in the central Government's or State government's budget. In Maths there are different ways of calculating tax.

Hence, we can say that taxes are the contributions of the citizens towards the expenditure of the government in its multifarious economic and non-economic activities..

Coming next with further information on types of taxes........

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