ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Everyone who earns any kind of income is liable to pay income tax. For individuals below 60 years of age, the tax exemption limit is Rs.

Detailed explanation-2: -Withholding tax is a tax that is deducted by the payer of the income. This withholding tax is also called retention tax. Under withholding tax, the taxable amount is deducted at source by the payer i.e. the payer of the income is liable to deduct the withholding tax before making payment to the payee.

Detailed explanation-3: -Income Tax refers to a percentage of your income that you are liable to pay directly to the government. The money collected by this direct tax route is used by the Government for infrastructural developments and also to pay the employees of central and state government bodies.

Detailed explanation-4: -Taxes are used by the government for carrying out various welfare schemes including employment programmes. There are Lakhs of employees in various departments and the administrative cost has to be borne by the Government.

Detailed explanation-5: -The top 1% paid the most in federal income taxes in 2019. Your overall tax rate won’t go up if your salary goes up, since higher tax rates only affect part of your income. The United States tax system is progressive, which means that those who earn more money pay a higher percentage in taxes. 12-Jan-2023