The product of taxable income and rate of tax is calculated as income tax. It is imposed on the individuals by the government varying with their income. It is different for different income holders. Different jurisdictions have different criteria of imposing taxes on the individuals. Some jurisdictions exempt charitable organisations from paying taxes depending on various financial facts. It is the levied amount on salary, commission, wages, interests and rents. It is of two types. Personal income tax imposed on income of the individuals and corporate income tax imposed on the profits and income earned by incorporated organisations.
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What is income tax?
