ITR meaning in Income Tax ?

A tax return is the completion of documentation that calculates an entity’s or individual's income earned with the amount of tax payable to the government, government organizations or to potential taxpayers.

Specific tax forms can be used by taxpayers, or private entities that are required to report information on the tax liabilities together with income earners, businesses, and companies.

Taxation is one of the biggest governmental sources of income. There are two types of taxes—direct and indirect—which are both parts of the tax revenue. Tax revenue is the income of government gained from taxes that are levied on income, profit, goods and services, land revenue, ownership, and transfer of property, and other taxes. It shows how effectively and to what extent the government manages the resources of the economy. Total tax revenue is then the percentage of GDP which stands as an indicator of the share of the country’s output collected by the government through taxes. Tax revenue is used by governments to grant sums of money to communities, including military, education, hospitals, and infrastructure. There are many programs that use money from the tax revenue such as defence and security that includes grants for Department of Defence; social security programs, major health programs, or safety net programs which are for example unemployment insurance, low-income housing assistance, food stamps etc.

In the United States the Internal Revenue Service (IRS) administers federal tax laws. It is a government entity that fulfils three main functions. Firstly, it processes tax returns. Secondly, it provides services for taxpayers. Thirdly, it enforces the tax laws enacted by Congress. Furthermore, IRS also investigates financial crimes and oversees tax-exempt organizations.

Citizens in Sweden, Denmark, Finland, and Iceland pay the highest taxes. Aside from the Nordic countries, Austria, the Netherlands, and Belgium also have high taxes. In contrast, countries such as Saudi Arabia, Brunei, Monaco, the Cayman Islands, Bahamas, and Andorra are so-called tax havens. These countries either have very low taxes, or none at all.