Taxation of Income

Taxation of income refers to the process by which individuals and businesses pay a portion of their earnings to the government. This revenue helps fund public services like education, healthcare, and infrastructure. Income tax is usually calculated based on how much you earn, with different rates or brackets for different income levels. People or companies report their income annually through tax returns, and depending on the laws in their country, they may be eligible for deductions or credits to reduce their taxable amount. Overall, income taxation is a way to share the financial responsibility of running a society.