|
|
| |
| Home » Information on Income Tax » Principles |
| |
Principles of Income Tax |
|
|
Principles of income tax depend on many things. It mainly depends on the total amount of income of a particular person. This is an important fact about income tax is that this is an individually paid tax. This tax is never to be paid collectively. Income tax is generally imposed by the finance ministry of a country on three types of income. Income tax may be imposed on personal earnings or wages of any worker. This tax may also be levied on the earnings made through capital gain. Income tax may be imposed on the income made from the financial transaction as it is also a kind of capital gain. Income tax is imposed on the business income.
|
Capital gain tax can be imposed on the earning made from the sale of share. The income one makes from the sale of a share or the income one may incur for the rise of price of shares are taxable under the principles of income tax. Many other kinds of savings like interest earning from the bank savings is considered as taxable income by the finance ministry. Tax is often imposed upon this profit made from the investment in bank and other financial institutes. Earning from bank savings is taxable as this earning is considered as a realized property gain.
Principles of income tax vary from one country to another country. In the tax system of some countries any earning made from the labor, skill or investment is deemed taxable. For example many states of US impose a certain amount of income tax on the earning made from the earning in gamble.
Another important fact about income tax is the payment of refund by the income tax department. The extra tax collected as income tax from the tax payers is returned to the payee. This is done after the settlement of income tax at the end of a financial year.
|
|
|
|
| |
|
|
| |
|
