Income tax is, as the term indicates, a tax levied on the income of persons, businesses, corporations and other commercial entities. When the tax is levied on the income of companies, it is called corporate income tax and tax levied on an individual’s income is called personal taxation. Personal taxation entails taxing the total income of the individual after allowing certain standard income tax deduction. Corporate income taxes means taxing the total net income.
Filing income tax returns has been made easier with the facility of filing income tax online. You can even file state income tax online. Thus more and more people are doing their income tax preparation online although the yearly software downloads is truly cumbersome and frustrating.
Income taxes in Canada constitute the majority of their annual revenues.
The federal government of Canada collects personal income taxes on behalf of all provinces except Quebec and collects corporate income taxes on behalf of all provinces except Alberta, Ontario and Quebec. The first online 2008 Canadian income tax calculator has been released recently. This tool incorporates all income tax rates in Canada for all the 13 provinces and as such, it has been widely welcomed by all the tax paying public in Canada.
Paying income tax becomes moral obligation of a citizen residing in any country. The money collected through income tax not only generates revenues for government but also makes people socially active and contribute to development in the long run. Pay income tax and see your nation grow.
