Income taxation is a system of tax that is levied on the income of individuals or entities. The income tax system is designed to collect revenue for the government and to redistribute wealth from higher-income earners to lower-income earners. In this module, we will discuss the basic concepts of income taxation, including taxable income, deductions, and credits.



1. Taxable Income



Taxable income is the amount of income that is subject to income tax. It is calculated by subtracting allowable...