Tax assessment as per a man’s capacity to pay is all around acknowledged standard, and salary is viewed as a palatable however not an adequate file of such capacity to pay. Wage Tax is, accordingly, for the most part perceived as a very fair type of tax assessment. A duty imposed on wage can regularly be moved to others and along these lines its rate is on those for whom it is expected. Since wage impose is dynamic in nature, it has a tendency to decrease financial divergence. Assessment rates and strategy for computing assessable wage differs with financial status of the citizen. Following are the general classifications of citizens:-

Organizations

Relationship of Persons (AOP)

Non Salaried Individuals

Salaried people

Company

partnership firm