An income tax is a tax imposed on the financial status of people, corporations, or other legal bodies. Various income tax systems appear, with different degrees of tax incidence. Income taxation might be progressive, proportional,and regressive. The tax is imposed on the income of companies, it is generally called corporate tax, corporate income tax, or profit tax. The concept of taxing income is a modern creation and presupposes various factors like a money economy, reasonably accurate accounts, a common understanding of receipts, expenses and profits, and an orderly society with reliable records. Taxes on wealth, social position, and ownership of the means of production were common. Preparing tax can be somewhat complicated for you especially if you do have only little bit of awareness about calculating your taxes. In India every individual wants to pay out their taxes on time well before last date of filing income tax . There can be normally two ways of calculating income tax its either hiring an accountant who can compute your taxes or you make out time to calculate taxes for yourself. Hiring an accountant means that you will have to payout them for their services and in contrast it will be highly valuable if you do finalise taxes by yourself as the work will be done effectively and you will have satisfaction that all calculations have been done precisely. On an average, online tax calculation is much rapid and affordable in comparison to conventional style of hiring an accountant. Full tax return is calculated instantly as you begin filling out the web form and complete this form and this is handy as you can check tax return online at any moment of the day. So, whenever you are free you can file your taxes online at your convenience. Preferably, you will not have to depend on anyone for filing your tax returns. Even if you've mastered all the latest rules, it's convenient to explore over a few traditional ones. These days, most married couples probably realise they're better off filing jointly the taxing tax, rather than individually. But for some people, filing collectively can be a big mistake. Individually,most upper-income taxpayers who worked for two or more employers last year may have paid too much . If you can't file your return by April 15, you can file for an instant six-month extension. But filing on time is especially smart this year because the Treasury Department will be giving out more than 130 million economic-stimulus payments, starting in May. To get a check prevailing year, you have to file a return for 2007. and you can still make a contribution for 2007 to an IRA as long as you file it by April 15.