Dictionary
a personal tax levied on annual income
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Wikipedia
cleanup-date August 2005 An income tax is a tax levied on the financial income of persons or of corporations. Various income tax systems exist, ranging from a flat tax to a progressive tax system. A tax levied on the income of companies is often called corporate tax, corporate income tax or corporation tax. Individual income taxes generally tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income, the difference between gross receipts and expenses.
History - The income tax was first introduced in Kingdom of Great BritainBritain by William Pitt the Younger in his budget of December 1798 to pay for weapons and equipment in preparation for the Napoleonic WarsNapoleonic wars. Pitt's new graduated tax began at a levy of 2old penced in the Pound Sterlingpound (0.8333%) on incomes over £60 and increased up to a maximum of 2shillings (10%) on incomes of over £200. Pitt hoped that the new income tax would raise £10 million but actual receipts for 1799 totalled just over £6 million. Income tax was levied under 5 schedules—income not falling within those schedules was not taxed. The schedules were: Schedule A (tax on income from UK land) Schedule B (tax on commercial occupation of land) Schedule C (tax on income from public securities) Schedule D (tax on trading income, income from professions and vocations, interest, overseas income and casual income) Schedule E (tax on employment income)Later a sixth Schedule, Schedule F (tax on UK dividend income) was added.Pitt's income tax was levied from 1799 to 1802, when it was abolished by Henry Addington during the Peace of Amiens. Addington had taken over as prime minister in 1801, after Pitt's resignation over Catholic Emancipation. The income tax was reintroduced by Addington in 1803 when hostilities recommenced, but it was again abolished in 1816, one year after the Battle of Waterloo.Finally, income tax was reintroduced in 1842 by Sir Robert Peel. Peel, as a Conservative, had opposed income tax in the 1841 general election, but a growing budget deficit required a new source of funds. The new income tax, based on Addington's model, was imposed on incomes above £150.The income tax has changed over the years. Originally it taxed a person's income regardless of who was beneficially entitled to that income, but now a person only owes tax on income to which he or she is beneficially entitled. Most companies were taken out of the income tax net in 1965 when United Kingdom corporation taxcorporation tax was introduced.Also the Schedules under which tax is levied have changed. Schedule B was abolished in 1988, Schedule C in 1996 and Schedule E in 2003, though the Schedular system and Schedules A, D and F still remain.Rates peaked in the late 1970s at 99%.
Income tax in the UK - Income tax is an annual tax, and is reimposed each year in the annual Finance Act.The British income tax has a number of bands: 10% (lower rate), 20% (basic rate for interest), 22% (basic rate), 32.5% (higher rate for UK dividends) & 40% (higher rate for other income). There are also a number of allowances allowed before the tax bands apply.
Income tax in the United States - Main article: Income Tax in the United StatesThe United States imposes an income tax on individuals and corporations. The income tax was first imposed during the Civil War.
Income tax in Sweden - Sweden has a taxation system that combines a direct tax (paid by the employee) with an indirect tax (paid by the employer). In practice, the employer provides the state with both means of taxation but the employee only sees the direct tax on his declaration form. Below is a compilation of the taxes that compose the final income tax (2003):Tax on "gross" income "from the employer": 32,82% ''(indirect, fixed)''Pension "fee" on "gross" income: 6.95% ''(indirect, fixed)''"State tax" on, "gross" income less pension tax and a "base deduction": ~32% ''(direct, varies by state)''"Federal tax" on, "gross" income less pension tax and a "base deduction": 0%, 20% or 25% ''(direct, progressive)''
Nations with no personal income tax - AndorraBahamasBruneiCayman IslandsKuwaitMonacoVanuatu
US states with no personal income tax - Citizens of these states still pay the national tax. Alaska Florida Nevada New Hampshire – does have tax on interest and dividends South Dakota Tennessee – does have tax on interest and dividends Texas Washington Wyoming
See also - Tax rates around the world*Income tax in the Netherlands*Individual income tax in SingaporeDividend imputationDouble taxationFair TaxFlat taxLifetime income taxNegative income taxPAYEProgressive taxSocial securityTaxTax resistanceTax returnTax Freedom DayTax withholding in the United StatesJock tax
External links - taxalmanac.org - TaxAlmanac - Online tax collaboration A wiki created by tax professionals with detailed information on US IRS Tax LawCategory:Taxationbe:Пад атак? на !дахо&# 1076;da:Indkomstskatde:Einkomm ensteuerru:ПодоходныР¹? налог
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Income Tax Department
The site gives comprehensive information on tax related issues, and general tax related information.
http://incometaxdelhi.nic.in/
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