Income tax basics

Income tax is an instrument used by the government to achieve its social and economic objectives. Simply put, tax is a duty or tariff that earning individuals pay to the Government in exchange of certain benefits such as law and order, healthcare, education, infrastructure, and a lot more. With proper planning, your tax liability can be reduced and optimised effectively, leaving you with a greater share of your income in your hands than being paid out as tax. In this article, we will explain some terms used frequently in the context of income tax.

This article was originally published on July 13, 2021.