Income Tax

Income tax is a critical component of a country's revenue system, imposed on the earnings of individuals and entities. It is typically categorized into progressive tax brackets, with higher incomes subject to higher tax rates. The funds collected through income tax support essential government functions, including infrastructure, social services, and public programs. In many nations, individuals and businesses are required to file tax returns annually, reporting their income and claiming deductions and credits. Understanding and complying with income tax laws is essential to avoid penalties and legal issues. Governments often use tax codes to incentivize certain behaviors or investments while ensuring equitable contributions from taxpayers.