Tax is the financial charge imposed by the Government on income, commodity or activity. The taxes are collected for serving the primary purpose of providing sufficient revenues to the State; taxes have come to be recognised as an instrument through which the social and economic objectives of a welfare State could be achieved. They are utilized now for providing incentives for larger earnings and more savings, fostering industrial development by selective concessions, restraining ostentatious expenditure, checking inflationary pressures and achieving social objectives like inequalities and the enlargement of opportunities to the common man.