Income Tax
Income tax is a direct tax imposed by the government on the income earned by individuals, businesses, and other entities. It is a major source of revenue used for public services such as infrastructure, education, healthcare, and defense. The amount of tax payable depends on the income level, applicable tax rates, and deductions allowed under the law. In many countries, income tax is progressive, meaning higher earners pay a higher percentage of tax. Timely filing of income tax returns is important to avoid penalties and ensure compliance with legal regulations. It also promotes transparency and contributes to national economic growth.