Tax refers to the financial charge or other levy which is inflicted on an individual or a legal entity by a state. Taxes are also imposed by many sub-national entities. The tax collection structure of India has been well divided and the state government, central government and local bodies are responsible for it. The union governments of India collect income tax, central excise duties and service tax while the state governments levy taxes on land revenue, stamp duty, VAT and many more. The local bodies are on the other hand, responsible for water tax, electricity tax and many other common taxes. The income tax, calculate the taxable income by combining the income on the basis of salary, incentives and allowances, capital gains and other sources of income. For the financial year 2008-09, total income up to Rs. 1,50,000 per annum would be exempted from such type of tax. For the income that ranges above this amount, there are several slabs. If the total income of a man crosses Rs.1,50,000, then the additional charge of income tax of 10 percent is levied. For the women, the minimum limit of up to Rs. 110,000 has been increased to up to Rs. 1,80,000 and for the senior citizens up to Rs. 2,25,000. The agricultural income is exempt from income tax. The educational cess of 3 percent is added along with this charge. The amount of indirect taxes was high compared to the direct taxes in India. Now, in India, the people can easily pay their taxes with the help of the e-taxing. There are numerous online websites available on the Internet, which would allow the people to return their taxes directly to the Indian government. There are so many advantages of paying tax online such as convenience, hassle free, user-friendly process and 24 x 7 return filing facilities are available. One of the most important advantages of paying online is that you can fill the form anytime, anywhere. The online process of tax paying is very simple and it can even hold permanent records for every detail.