A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law.

What is a tax in simple words?

Tax can be defined in very simple words as the government's revenue or source of income. The money collected under the taxation system is put into use for the country's development through several projects and schemes. > The Indian Constitution authorizes the Central and the State Governments to levy taxes.

What is example of tax?

Tax is defined as to make people pay a percentage of money to the government. An example of to tax is to charge citizens self employment tax at the end of the year. ... An example of a tax is a portion taken out of weekly paychecks and sent to the government.