Tax which is paid on earned income in called Income Tax. Different countries describe income tax in different ways. Income tax is a form of tax which is levied by the government to pay for services of security, education, health care, public facilities, transportation, and public services.
|A picture of income tax.|
Features of Income Tax
Income tax covers various conditions which consider the way in which income was earned by an individual. Some of the features of income tax include the following points:
- Income tax is tailored to suit the people of the country.
- Income tax helps the government provide services to the people.
- Income tax normally only paid once a year, by individuals who earn an income.
Benefits of Income Tax
Income tax is a form of income for governments. Some of the benefits of income tax include the following points:
- Income tax is paid only on that income which is earned by an individual.
- Income tax helps the country develop by funding a common governing body.
- Income tax is made to be suitable different for people with different incomes and ages.
Doubts of Income Tax
Income tax may not be useful in all aspects of the results which are expected from it. Some of the doubts of income tax include the following points:
- Income tax may not cover all types of earnable income.
- Income tax could sometimes become a burden to income earners.
- Income tax may not be sufficient to fund the day-to-day activities of the government.
Paying Income Tax
Income tax is often paid using bank accounts and through government offices. These days, it is even possible to pay tax on income by using the Internet. The rates for income tax change each year as the government adjusts the budget for the government. Which Internet portal do you use to pay your income tax?
Related Links About Income Tax
Feel free to visit, share, and learn more about Income Tax: