Basic Concept of Income Tax
The Government needs money to maintain law and order in the country, security of the country from foreign power and promote welfare in the country. Since our government is wedded to socialistic pattern of society it is foremost duty of the government to bring out such welfare and development programmes which will be bring the bridge between the rich and poor. All this requires mobilization of funds from source. These sources may be direct or indirect. Income tax, being a direct tax, is an important tool to achieve balanced socio-economic growth. For bookworms “A tax is a compulsory contribution from the person to the govt. to defray the expenses incurred in the common interest of all, without reference to special benefits conferred”—Seligman. “A compulsory contribution of the wealth of person or body of persons for the service of the public powers”—Bastable “Taxes are compulsory contribution made by the members of a community to the governing body of the same towards the common ex