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Tax generally refers to financial charge that is being imposed upon a person or an entity by the state government or other equivalent. According to law, if that concerned individual or an entity fails to pay then the state has got all the powers to punish them strictly. It is usually a burden on individuals to help government. There are 2 types of taxes called direct taxes and indirect taxes. It should be considered as a compulsory payment but it should be a contribution. it is the duty of every person to file their taxes. An electronically based method has been introduced so that people can file taxes online free. This avoids manual filing of taxes. People may wonder and will think about the reasons behind the payment of taxes. These taxes being used by the government for various purposes such as for the development of economic infrastructure, education systems, health care systems, benefits for unemployed people, public transportation, waste management, energy, water, protection of public property, social engineering, fund welfare, public services etc. The main purposes of taxation are Revenue, Redistribution, Repricing , Representation. The order of imposing taxes is being described by progressive tax, proportional tax and regressive tax. In short tax is an important thing that has to be paid by every citizen.