What is Income tax?
An income tax is the charge levied on individuals or entities (E.g., Corporates) that varies with the income or profits (taxable income) of the taxpayer. Taxes vary widely by jurisdiction. Many jurisdictions refer to income tax on business entities as companies tax or corporate tax. It is of two types as personal tax and corporation tax. The personal taxes are imposed on the incomes of individual persons. The corporation taxes are imposed on income of incorporated firms.
Purpose of income tax
In order for the government to provide the public with the necessary goods and services, revenue must be raised through taxation. This revenue is generated through direct and indirect forms of taxation. Direct taxes are paid on income. This effectively means that the more income you earn the greater your contribution is expected to be to the state.
Why do we pay income tax?
The government uses taxes to pay for things that most people use, such as roads, schools, libraries, police and fire protection. Taxes also pay for special programs like welfare and social security. There is sales tax on the things you buy, income tax on the money you make, property tax and other kinds of tax.
What we do at Velu Associates?
We are best at providing,
- PAN Card
- Filing of Income tax
- TDS Returns
- Consultancy on Income Tax Matters
- Tax Refunds
- Tax Planning & Savings
- Maintenance of Income Tax Records
- Liaisoning with Income Tax Authorities
- Tax deduction account numbers