according to a personís ability to pay is universally
accepted principle, and income is considered a satisfactory
though not a sufficient index of such ability to pay.
Income Tax is, therefore, generally recognized as
a highly equitable form of taxation. A tax levied
on income can nor normally be shifted to others and
thus its incidence is on those for whom it is intended.
Since income tax is progressive in nature, it tends
to reduce economic disparity. Tax rates and method
of calculating taxable income varies with fiscal status
of the tax payer. Following are the broad categories
of Persons (AOP)