Tax meaning

•  Introduction 

Tax is very complex no one can understands it's fully. in 1922 tax was introduced. The 'income tax Act 1922' gave the first system to calculate  income tax on excess limit of income. It has own law which in 23 chapters and 298 sections as per official website of income tax in which 80c is the most popular section. no one can remember all the sections of tax law because each sections have different tax law.

 As per Income Tax Act 1922 It is mandatory for any accountant or any CA to follow the tax law for filling of income tax. Tax is mandatory in all countries because income tax is revenue source for the government which is  generate maximum social benefits for public.

• Meaning:

The word 'tax' is given from the word 'taxation'. tax is the source of revenue for the government which give social benefits to the public by collecting money from the people in form of tax. It is not mandatory for all people to pay tax to the government, it is mandatory only for those whose salary is above the figure set by the government in short only they can 

pay who's ability to pay. 

According to the tax Law, tax is imposed only on Amount higher than those fixed by the tax, in which different people have to pay different taxes, tax is calculated in percentage, in which different percentages are applicable on different Amounts. This percentage is determined on the 'ability to pay' of the people, that is, a person will pay only as much tax as has ability to pay

In given below a table show the tax percentage and on which amount tax is calculated.

                      (As per A.Y. 2023-2024)

Income tax	Slab Rate in %
0-3 lakh	0%
3-6 Lakh	5%
6-9 Lakh	10%
9-12 Lakh	15%
12-15 Lakh	20%
Above 15 Lakh	30%

The above table is the slab rate for the current year, the table tells that if a person's income is 3 lakhs then he should not pay any tax, but if a person's income is 3 to 6 lakhs then he will have to pay up to 5%, But if the income is from 6 to 9 lakhs then 10% will have to be paid, and if the income is 9 to 12 lakhs then 15% tax will have to be paid, and 12 to 15 lakhs income will have to pay 20% tax, and if the income is 15 lakhs If it is above 30% tax will have to be paid.

• Types of Tax: 

There are two types of tax in nature which are mandatory for people to follow and make a part of a growing which is help to grow. sacrifice of a part of income by any person it also know as tax. 
   1. Direct tax:  The tax which is pay to the government directly by individual or by any organizations. Direct tax is pay on salary and excess of income and many others. There are some forms of direct tax.
                a. Income tax: This type of tax applicable on  income generated by business and by individual. This tax calculate on specific rates which is described finance minister.                 b. Capital gain tax: This tax relevant on profit made by investors during sale their investment.                     c. Corporate tax: corporate tax is also called as corporation tax, this type of tax is imposed on revenue generated by corporation or capital of corporation, it is also imposed on cost of goods sold (COGS).
               d. Property tax: Property tax is paid by any property owner by individual or any separate entity. It is relevant on any property.
               e. Wealth tax: wealth tax is relevant on individual or any company's wealth. Wealth tax is calculated as on 31st March.

  2. Indirect tax: Indirect tax is those tax which is pay to the government as indirectly. This tax is pay by everyone no one can leap it. The rate of indirect tax is same for everyone. This tax pay while purchasing of any goods and services. there are many forms in indirect tax.
                 a. Service tax: Service tax is specially imposed on service. Tax is given by the customer to the service provider. E.g. If a person goes to the doctor, and gives money to the doctor in return for his service, in which tax is also included.
                  b. VAT: VAT stands for 'value added tax'. it is charged by the central government while purchasing goods and services by the consumers. for e.g. if a product cost is ₹100, and VAT on goods is 15%, then after charged of VAT the invoice value of goods will be ₹115
                 c. GST: GST stands for 'Goods service and tax'. GST was established in 7th July 2017. Every trader have their own GST number and GST number is essential for all traders to do trading. This tax is collected by the central government and state government with the form of CGST and SGST only in case of intrastate and if a trader trade with interstate in this case trader will pay tax in form of CGST and IGST
                 d. Custom Duty: Custom Duty is those tax which is imposed on international trade. When any goods export and import from one country to another country in this case government charge custom duty on goods.
                 e. Stamp duty: Stamp duty is imposed on documents like property, assets, patent etc. These tax is also collected by government. 
                 f. Entertainment tax: In this case people will have give tax to the government which is related to as entertainment they are relevant on amusement park, ticket booking of any movie, party etc.

  

• Conclusion: The tax is very complex and is in several chapters. Tax is revenue for the government which is leading in creating the best infrastructure and also beneficial for public welfare like hospitality, park, subsidy. Tax can be a burden for someone who has to pay a lot but, with the help of this our country can develop.