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Investments under section 80c upto 150000 home loan interest upto 200000 medical insurance premium paid upto 15000 different allowances given by employer.
Income tax definition math. Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. In addition to federal income tax many individuals and businesses in the us must pay a state income tax. Income tax is used to fund public services pay government. States rely on revenue from income taxes to fund public services like public schools health care transportation corrections and low income assistance.
Federal income tax laws apply to all american taxpayers. Income 10 00 001 and above tax. Alex earned 300 but had to pay 42 of that to the government as tax.
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