What is Tax

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A tax is a compulsory financial charge or other levy imposed on a taxpayer by a government in order to have the funds for different sorts of public expenditures. When a person falling in the tax slab, fails to show any investments and still hasn’t paid tax comes in the eyes of Income Tax Department, he or she is punished by the law.

Nevertheless, there are three types of tax, which are, proportional tax, regressive tax, and the progressive tax.

The ability of the government to raise taxes is known as its fiscal capacity. When the tax revenue is less than the expenditure, the government goes in debt. To clear past debts, the portion of tax collected can be used.

Also Read: File Tax Returns Under 7 Minutes With HR-One

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Sukriti Saini

Sukriti Saini works as a content marketing strategist at HROne. She has done Bachelors in Journalism from Delhi University and carries several years of experience in content development. HR trends, Productivity, Performance and topics related to Employee Engagement garner most of her writing interest here. During leisure, she loves to write and talk about fashion, food & life.

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