Suppose you are in a job and you get salary of 100000 .
Tax on this salary is charged by govt which is called Income tax
Now You earned 100000 but spent 80000 and invest 20000 in FD
Suppose You earn 500 interest on this FD
Tax on this 500 is also called Income tax
Hence,Income tax is a tax charged on different incomes
Written on Feb. 14, 2017, 6:21 p.m.