Income tax is a type of tax that the central government charges on the income earned during a financial year by the individuals and businesses Taxes are sources of revenue for the government. Tax Refunds Government utilizes this revenue for developing infrastructure, providing healthcare,education,subsidy to the farmer/ agriculture sector and in other government welfare schemes. Taxes are mainly of two types,direct taxes and indirect form of taxes. Tax levied directly on the income earned is called as direct tax,for example Income tax is a direct tax. The tax calculation is based on the income slab rates applicable during that financial year. Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and Indian companies have a fixed rate of tax calculated on their tax profits, the individual,HUF, AOP and BOI taxpayers are taxed based on the income slab they fall under.
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