India currently has a well-developed three-tier federal tax framework with well defined power between the Central and State Governments, as well as municipal entities. The Central Government charges income taxes (save for agricultural income, which is levied by the State Governments), customs duties, the Central Goods and Services Tax (CGST), and the Integrated Goods and Services Tax (IGST) (IGST). State governments levy taxes such as the State Goods and Services Tax (SGST), stamp duty, state excise, land revenue, and profession tax. Local governments have the authority to charge taxes on properties, octroi, and facilities such as water supply and drainage. According to the Indian tax system, the government collects taxes from its inhabitants in order to create revenue for public-works projects and to improve the country’s economic footprint. Section 2(24) of the Income Tax Act of 1931 defines “Income” as “the sum of money which any individual or business earns during a specific period of time from the many accessible sources of Income.” It signifies that the money received by an individual as pay and compensation from the employer who has hired him to undertake a specific task is his principal source of income. Similarly, in the case of a firm, the revenue earned by fulfilling key business operations is regarded as the company’s income. In layman’s terms, income is the money received by an individual over a specific period of time.