Income tax is a mandatory financial levy imposed by the government on individuals or entities based on their earnings. It is a percentage of income that individuals must pay to fund public services and government operations.
The tax rates often vary depending on income levels and are subject to legal regulations. Income tax can encompass various sources of earnings, including wages, investments, and self-employment income.
Filing income tax returns is a common annual requirement, allowing individuals to report their income and determine the tax owed or refund due.
