Income Tax is revenue collected by the Government for the welfare of the State. It is a direct Tax and it is mandatory to pay Income Tax. It may be said as a charge on the income we earn. Generally progressive rate of taxation is followed which means the tax liability increases as the income gets increase in the hands of an individual. Individual may be a person, company, firm, association of person or a Hindu undivided family (in India). Different rates of taxes for different individuals. It is the duty of an every individual to pay income tax. In India the Income tax authority does not distinguish between legal and illegal income and thereby income attained by illegal activity is also taxable.
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