Article#9: Income Tax
Most of us usually go with paying the income tax, but may or may not file the returns and don’t get into the details of it. If you would like to know, then you have to go through this article as this one is to create a way more awareness on what is income tax? Why do the governments impose income tax? How is it calculated and collected? What is form 16? Why should we file the IT returns? And so on. Income Tax can be defined as the percentage of income that government imposes on every salaried individual, corporate firms, companies, Association of persons and on anyone who generates income. The law that governs the income tax is Income Tax Act, 1961. The government uses this amount for infrastructural development, to pay the salaries of those people working as state or central government employees and to serve the public. The income tax that every one of us pay forms the major part of revenue for the government. The Central Board of Direct Taxes (CBDT) is responsible for managing all t...