Income tax is also known as direct tax. Income tax is a tax which is charged on the income of a person. By law, every individual or business must file the Income tax return every year to determine that whether they are liable for any tax or eligible for refund if there is any tax deducted at source
Origin of Income Tax :
The income tax was imposed in America first time during the war of 1812 to collect the fund for repayment of $ 100 million debt that was incurred through war related expenses. After the end of war, the tax was repealed but in the early 20th century income tax became permanent.
Tax Deducted at source (TDS) :
TDS is also known as one of the way to collect the Income tax, in which at the time of making /credited certain specific nature of payment to the other person, it is the responsibility of the payer to deduct certain percentage of amount as tax and submitted to the government account. The percentage of tax is varied on the type of payments.