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  • Category: Miscellaneous

    Why should we pay income tax?

    The government is running the country with the money that is being collected from the people of the nation in the form of various taxes. GST, house tax, professional tax, property tax, income tax so on so forth. The main source of income to the government is from the payments received in the form of income tax. But is this money being utilised for the good cause? Majority of the money is going for salaries and other benefits to the leaders in ruling and the leaders running the government and government employees. The remaining money is going for the development of infrastructure and maintenance of it. A lot of money is going to a set of people in the form of loans through the bank and the same is never being recovered and the loan takers are defaulters and flying away to other countries. As such the real taxpayers are losing their money and some people are getting benefitted. Under these conditions, if all taxpayers refuse to pay tax and go on protest what will happen? This is an imaginary situation and I want to know the opinions of the learned and knowlegble members of this ISC.
  • #644166
    Taxes in our country have become a catch 22 situation. If we do not pay it, Govt will be deficit of funds and if we pay it we are worried that a part of it will be misappropriated by the clever and fraud people.

    So what is the solution. It is very clear that two things are required in this scenario - first is compliance of paying taxes by the citizens and second is honesty and sincerity in public expenditures by the Govt.

    These are two complimentary requirements and absence of even the one of them will be detrimental to progress.

    If such an imaginary feat of achievements is accomplished, tax rates may come down automatically giving a significant relief to everyone.

    Knowledge is power.

  • #644178
    During the days of the Kings, his deputy used to collect "kisty" from the people and that is nothing but tax. A government or the state cannot survive without contributions from the Industries, trade, business community , salaried class and general public. Though GST has been collected, fifty percent of it would goes to respective states based on the population and amount fixed by NITI ayog. And the tax collected from income tax and other taxes would be unitized for development purpose of different departments. Now the center has to fund the Railway project and Defence project which has huge allocations.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #644183
    In our country everybody is paying tax irrespective of their financial condition. While purchasing any item we are paying a tax and those earning above a threshold is paying the income tax. Study shows only about 2% of the total population pay taxes and the government is finding new measures to increase the number of income tax filings, though that will not increase the tax collection.

    It is a fact that the tax payers' money is misused in many ways, but to keep the developmental projects running a fund is required. If the tax payers refuse to pay tax, then many developmental work will come to a halt and the economy will slump. It is true that given the corruption level in the country at times a taxpayer thinks in this way, but effective measures to tackle corruption have to be found for smooth running of the projects.


    "Life is easier when you enjoy what you do"

  • #644190
    Government needs money to run the Administration(to pay the Govt employees), the defence of the country (to pay Army, Navy & Airforce), to maintain law and order(the special forces and the police) to care the poor public, and for the development of the country. The only source of income to the government is the various taxes, direct and indirect. So, government should ensure that no tax payer is spared for not paying their tax. Even the government employees are not spared, but compelled to pay some sum as tax.

    Tax is an important aspect of a government, and it cannot be ignored. No tax, No government and No governance.

    No life without Sun

  • #644192
    Let us think this way. If we don't pay income tax, Government will intentionally block our bank accounts. Is it possible to live without a bank account for those who are already paying income tax? So, there is no escape.
    Though Income Tax is a progressive tax, in my opinion it should be terminated. Instead of increasing the tax net, Government should impose more tax on luxury items, which only rich can afford and impose less tax on necessary items. In this way all the people have to pay tax in one way or the other.

  • #644194
    According to me, the salaried class (both government and private) should not be taxed to pay taxes. They should be exempted from taxes. Only the business class, and the goods manufactured/imported/exported should be levied taxes. Any businessman irrespective of their earning should be levied tax.
    No life without Sun

  • #644207
    Even from the old 'Arthashastra' of Chanakya, tax is a mandatory part of citizen's contribution to the nation building. For a just and manageable uniformity, certain rates are prescribed as percentage from one's income that should be given to the government for the running of state and doing welfare measures.

    Even old treatise on this matter considers a portion of one-sixteenth as a reasonable and just contribution of one's tax to government. By and by , as the governmental activities and spending increased taxes also slowly expanded.
    There will be always some dissatisfaction about taxes with people always, and people will not be giving taxes voluntarily.

  • #644224
    Our Prime Minister Modi and Finance Minister Arun Jaitely went on records that honest tax payers would be taken care of and those who dodge to pay would be punished. Let us see what kind of care the NDA would take ?
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

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