Income tax is the key source of capitalization that is provided by the government. They’re used to support government programmes, meet government obligations, and distribute commodities to residents. The type of tax like Income tax is generally imposed by the government on the individual and business earrings under their authority. An income tax return is to be filed by taxpayers according to the law to regulate the tax liabilities. Income taxes can take many different forms, including:

• Personal income tax
• Corporate income tax
• Income tax levied by the state and local governments