Income tax is an indirect tax that individuals, HUFs (Hindu Undivided Families), and other taxpayers pay on their earnings. It is a portion of the income that goes to the government to fund various expenses such as healthcare, education, infrastructure, and subsidies. The tax amount is based on income levels or gains during a fiscal year, and the government can define the applicable tax rates. If you are new to taxes, you can seek the assistance of a chartered accountant.