Income Tax

Income tax is a levy imposed by governments on individuals and businesses based on their income. It is a primary source of revenue for many countries and helps fund public services and infrastructure. The rate at which income is taxed typically varies depending on the amount earned and the tax regulations of a particular country. In most systems, individuals and entities are required to file annual tax returns, which detail their earnings and the corresponding tax liability. Compliance with income tax regulations is crucial, as failure to pay or properly report income can result in penalties. Understanding income tax can help in better financial planning and legal compliance.