Income Tax Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Income Tax, written in plain English, along with examples of how it is used.

What is Income Tax?

It refers to any charge or tax on the persons annual business income, capital gains,investments and all aspects, after the deduction of the expenses, benefits and charities which is levied by the government for the development of the society as a whole. The tax is deducted on the basis of rules and norms established by the governments.