Income Tax Legal Meaning and Definition

Here is a simplified definition of the legal term Income Tax.

Income Tax (noun):

An income tax is a type of government levy, charged on an individual's or business's annual financial earnings. This includes money from jobs, investments, and capital gains. After subtracting expenses, allowances, and charitable donations, the remaining amount is what the government taxes. The goal of income tax is to fund public services and societal development. Specific rules and rates for income tax are set by the government.