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.