Compress folder Test/ to Test.tar.gz

tar czfv Test.tar.gz Test/
czfv = ‘Compress Zip File Verbose’
If you want bzip files, use ‘j’ instead of ‘z’.

Uncompress Test.tar.gz to folder Test/

tar -xzf Test.tar.gz
x = ‘eXtract’
Again, if you want bzip files, use ‘j’ instead of ‘z’.

http://en.wikipedia.org/wiki/Tar_(file_format)

Reference
http://txt.binnyva.com/2007/02/command-to-compressuncompress-targz-and-tarbz2-files/