What is tax | Tax meaning

Tax is a charge, which is applicable on every purchase of people and that tax goes to the exchequer. Which is used by the government to run government services and schemes. Even every person pays tax but he does not know it. That he is also paying tax, even a beggar also pays tax. What is Tax?

what is tax

Tax is an amount that is applied by the government on all types of goods. And the government runs on the amount of this tax. Then whether it is to pay salary to a government employee or to provide any service to a common man like colony or ration or construction of a road etc.

Why tax is levied

Taxes are imposed so that the government can be paid for running various types of services. And the tax applies to those earning more than a certain amount. And in India this amount is up to ₹ 500000 i.e. if the annual income of a person is less than ₹ 500000. So no tax will be imposed on his earnings, but if his income is more than ₹ 500000 annually then tax will be applicable on it.

Although if a person’s salary is less than ₹ 500000 annually then it does not mean that. That he is not paying tax though he is not paying any tax on his income. But he must be paying tax on the things he uses on a daily basis. Like if you go to buy any item, or use any other type of item. Taxes are collected wherever you send them, even when you go to pick up matches. So on that you will get to see Tax included or including all taxes , that is, companies also collect taxes for their products from people only.

You will definitely find all taxes included or tax included written in most of the goods . Which means you are also paying tax on that purchase. And on many products that amount is also written as the amount you are paying as tax for that item.

In this article you learned what is Tax and Tax meaning. We hope this information will prove useful for you.

Leave a Comment

Your email address will not be published. Required fields are marked *