The report analyzes various aspects of taxation concepts such as the income tax and the rules applied on the same and how they can be applied in real life. It also contains a case study on Emma’s capital gain tax and city sky company‘s goods and service tax. The report also intends to equip the student with the understanding and knowledge on various deductions concerning income ax both in Australia and Diaspora. The taxation principles which illustrate what a tax system should demonstrate are also included.