PERSONAL TAX Meaning and
Definition
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Personal tax is a term used to describe the system of taxation imposed by government authorities on the income, property, and assets of individuals. It refers to the financial liability that individuals are required to fulfill based on their personal earnings and assets. Personal tax is an essential component of a country's taxation system as it plays a significant role in generating revenue for the government.
Individuals are typically obligated to pay personal tax on various forms of income, such as wages, salaries, bonuses, commissions, investments, and self-employment earnings. The tax rate and amount paid are determined by the government and are usually progressive, meaning they increase as income levels rise. Additionally, personal tax is often subject to various deductions, exemptions, and tax credits, which can reduce an individual's overall tax liability.
Personal tax is typically paid through a variety of methods, including withholdings from the individual's paycheck, estimated tax payments throughout the year, or through an annual tax return filing. The tax collection process is overseen by government tax agencies, which ensure compliance with tax laws, enforce penalties for non-compliance, and handle any disputes or audits related to personal tax matters.
In summary, personal tax is the compulsory financial obligation imposed on individuals by the government, based on their income, property, and assets, to generate revenue for public expenditure and services.
Common Misspellings for PERSONAL TAX
- oersonal tax
- lersonal tax
- 0ersonal tax
- pwrsonal tax
- psrsonal tax
- pdrsonal tax
- prrsonal tax
- p4rsonal tax
- p3rsonal tax
- peesonal tax
- pedsonal tax
- pefsonal tax
- petsonal tax
- pe5sonal tax
- pe4sonal tax
- peraonal tax
- perzonal tax
- perxonal tax
- perdonal tax
- pereonal tax
Etymology of PERSONAL TAX
The word "personal tax" is a compound composed of two separate elements: "personal" and "tax".
The term "personal" comes from the Latin word "personalis", which means "pertaining to a person". It entered the English language via the Old French word "personel" during the 14th century.
The word "tax" can be traced back to the Latin term "taxare", meaning "to assess, to appraise, to charge". This word evolved into the Old French term "taxer", which entered English as "tax" during the 14th century.
When combined, "personal tax" refers to a form of taxation that is specific to individuals and is based on their income, assets, or other personal circumstances.
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