What "income tax" means in finance

Income tax is a tax levied on the income earned by individuals, businesses, and other entities. It is a form of direct tax that is paid to the government based on the amount of income earned in a given period. The tax rate typically varies based on the level of income earned, with higher earners generally paying a higher rate of tax. Income tax is a major source of revenue for most governments, and it is used to fund public services and infrastructure, as well as other government programs.