The tax levied by the union government on the income of individuals is known as personal income tax. This tax is an important source of revenue for the government and is levied on the income earned by individuals, including salary, wages, profits from business or profession, rental income, and capital gains.

Personal income tax is an example of a direct tax, which means that the tax is directly paid by the individual earning the income. It is based on the principle of ability to pay, where individuals with higher incomes are required to pay a higher percentage of tax compared to those with lower incomes.

Here is a detailed explanation of personal income tax:

1. Definition and Purpose:
- Personal income tax is a tax imposed on the income of individuals by the government.
- The purpose of this tax is to generate revenue for the government and fund various public services and welfare programs.

2. Taxable Income:
- Personal income tax is levied on the taxable income of individuals.
- Taxable income is calculated by subtracting allowable deductions and exemptions from the total income.

3. Tax Slabs and Rates:
- Personal income tax is levied at different rates based on income slabs.
- The tax rates are progressive, meaning that as the income increases, the tax rate also increases.
- The tax slabs and rates are decided by the government and are revised from time to time.

4. Filing and Payment:
- Individuals are required to file their income tax returns with the tax authorities.
- The tax return includes details of income, deductions, and exemptions.
- Individuals can pay their taxes either through advance tax payments or through tax deducted at source (TDS) by their employers.

5. Penalties and Consequences:
- Failure to pay income tax or filing incorrect returns can lead to penalties and legal consequences.
- The tax authorities have the power to audit and investigate the income tax returns to ensure compliance.

Conclusion:
Personal income tax is a crucial component of the government's revenue generation. It is levied on the income earned by individuals and is based on the principle of ability to pay. Understanding personal income tax is important for individuals to fulfill their tax obligations and contribute to the development of the country.