Question

Explain four characteristics of income tax

Answer 1

Characteristics of income tax:-

• A tax is paid out of the income of the taxpayer.
• A tax is levied according to certain legal requirements.
• The fact that tax is a contribution implies the notion of a sacrifice involved on the part of the contributor . The amount of tax is Not fixed with reference to the exact benefit which a taxpayer receives from public service.In other words there is no element of quid-pro-quo in the payment of tax .