|Income tax is a tax levied on the financial income of corporation, individuals or other legal entities by Central Government. It is administered by the Central Board of Direct taxes under Ministry of Finance in accordance with the provisions of the Income Tax Act.
With the varying degree of tax incidence, various income tax systems came into being. Income taxation can be proportional, progressive or regressive. Income tax is often called corporate tax or corporate income tax or profit tax when the tax is levied on the income of companies. Corporate income taxes often tax net income, while individual income taxes often tax the total income of the individual.