Income Tax
Income tax is a tax charged on an individual’s taxable income according to the applicable tax laws. For salaried employees, income tax may be deducted by the employer from their salary and deposited with the government as required.
Payroll teams typically consider an employee’s salary, applicable exemptions, deductions, declarations, and tax regime while calculating tax deductions.
In simple terms, income tax is the tax an employee may need to pay on their taxable income.
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