Income Tax

Income tax is an indispensable source for the economic growth of country. It can also be consider as one of the foremost pillar on which the growth of Indian economy is based. Moreover, taxes can be divided into two forms.

Although both the terms have different meaning in different contexts but broadly we can define them as follows....

Direct Tax

In this category, govt. collects taxes directly from the person to whom it has been imposed.For example, a person who is employee in any firm & paying tax to the government comes in direct tax.

Indirect Tax

In this category, we collect taxes not from the person who is actually paying the tax while from the intermediaries.
For example, a person who is purchasing something from a retail shop also paying VAT (Value Added Tax) included with the goods but he directly does not pay it to government. It is the retail shopkeeper who pays VAT to the government.

Finally, Income tax can be elaborated as “an involuntary fee imposed by government on the person whose any source of income is above the limit of unchangeable amount”. In such condition, he will be liable to pay income tax.