EXCERPT FROM THE STUDY
Income tax is a levy imposed by the government of a country on its citizens, individual or entities known as the taxpayers. The levy imposed on the taxpayers is such that it varies with the level of income or profits of the taxpayers. Taxes imposed on the taxpayers or corporations or entities is termed “Company Income Tax” while those imposed on the personal income of an individual taxpayer is termed “Personal Income Tax”. Thus, personal income tax signifies taxes imposed on the personal income of the individual. These taxes are imposed on the income of the individual on a basis of ‘Pay as You Earn” (PAYEE) and the individual taxpayer must be an employed person and expected to file returns on a yearly basis. The Personal Income Tax (Amendment) Act 2011 demands that a taxpayer files returns for the preceding year within 30 days of the end of the year (i.e January 31st . – previously 90 days, i.e. March 31st.).
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