Personal tax is a governmental tax that is to be collected from individuals and enterprises. Just like other taxes, personal tax is calculated with the total number of incomes. Personal tax can be imposed at governmental and sub-divisional levels. There are exemptions available for entities that are not entitled to pay personal taxes. Personal tax is generally calculated in terms of percentages. The rate of personal tax might increase with the increase in taxes. The tax rates also vary a lot with the characteristics of a taxpayer. Nonresidents are often exempted to pay the taxes. But these policies can vary a lot with the type of resident and the country.

The taxes like personal tax are collected based on the ordinance. Even citizen is liable to pay personal tax as per the given ordinance. Just like the other taxes, personal taxes must be paid timely. Failing to pay the taxes may result in significant penalties. Personal tax is a financial liability that is to be paid by the individuals based on below given heads.

A. Monthly Salary
B. Rental property income
C. Profits from business
D. Gains from business or profession.
E. Capital gains
F. Income from alternate sources.

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