Income Tax : An Important Part Of One 's Finances

811 Words Nov 8th, 2015 4 Pages
The famous saying “In this world nothing can be said to be certain, except death and taxes” is often attributed to Benjamin Franklin. Whether or not Franklin was the first to say this famous quote, the quote itself is quite a great way to put forward the feeling people have towards tax.

While most don’t jump out of joy when income tax filing approaches, it is nevertheless an important part of one’s finances. But how to best manage your income taxes? In this guide, you can learn about income tax, the benefits of managing your taxes and tips for ensuring you are doing the right things when it comes to income tax.

What is income tax?

Income tax is one of the most known taxes around the world. It is a tax governments impose on financial income the entity generated within the government’s jurisdiction. Income tax is imposed on both business entities as well as individuals. The income tax of companies or corporations is often referred to as companies tax or corporate tax.

The tax is payable on the gains from a specific period set by the governing jurisdiction. In most instances, the period is the country’s financial year, but corporations especially might pay income tax from a shorter period as well. There are also other differences in the procedure and you can find more about these in the section below.

A business entity or the individual might in some instances be eligible to receive a tax refund. On the other hand, if the entity has filed an income tax return, which…
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