Income tax is the levy paid by the assessee to the Govt. on 
the income earned during a particular year

INCOME TAX IS A DIRECT TAX WHERE THE ASSESSE HAS TO PAY ON 
HIS INCOME EARNED DURING THE FINANCIAL YEAR.

The income Tax Act classififes the income of 
	individuals into 5 different sources.
	1) Income form Salaries.
	2) Income from business and profession.
	3) Income from house property.
	4) Capital Gains.
	5) other income.

Income tax = taxable income * applicable tax rate - tax offsets

taxable income = assessable income - deductions
assessable income = ordinary income + statutory income