Income Tax Basics in India Government utilizes this revenue for developing infrastructure, providing healthcare,education,subsidy to the farmer/ agriculture sector and in other government welfare schemes. Taxes are mainly of two types,direct taxes and indirect form of taxes.

Income Tax is undoubtedly the most important source of revenue for the Indian government. It is established as an inevitable imposition on the citizens in order to raise funds for fulfilling the development & defence needs of the country. In India, the first Income Tax Act was introduced in 1860.

A state income tax is a tax on income earned in that state. It is similar to a federal income tax, but state income tax generally funds state budgets rather than the federal government.

1913

Most government money comes from:

• Collecting taxes, or revenue, from people and businesses.
• Borrowing it by selling Treasury securities (savings bonds, notes, and Treasury bills)

Most countries – from those developing their economies to the world’s richest nations – issue debt in order to finance their growth. This is similar to how a business will take out a loan to finance a new project, or how a family might take out a loan to buy a home.

United States

Federal debt is at its highest point in American history. Raising taxes and cutting spending are the two most popular solutions for reducing debt. Driving up the GDP can help reduce the debt-to-GDP ratio. Diverting spending from the military to other sectors can boost job growth and help the economy.

Effectively, owing to the acceptance of the dollar as the international trade currency, any dollar supply eventually resides in the forex reserve of a nation, or in the safest investment—U.S. Treasury securities. Buying U.S. Treasurys enhances China’s money supply and creditworthiness.