I wanted to start my first post with a joke, but it was cut short, just like my salary. Anyway, here's one: What do the Government, a mugger, and your kids have in common? Ans: They all take your money. There are basically two types of taxes that are applicable to most of us - Income Tax, otherwise known as Direct Tax. This is called direct tax because it is directly dependent on your income. Tax is collected as a percentage of your income. And if your income is below the limit then no tax is collected. Goods and Service Tax (GST), otherwise known as Indirect Tax. This is called indirect tax because the tax collected doesn't depend on your income. Anyone who is buying something is paying a tax called GST. Let us talk about Income Tax today, specifically Income Tax for salaried individuals. The Income Tax Act calls taxable units "Person". A "Person" consists of: Individual Hindu Undivided Family Company Firm Association of Persons or Body o...