Should Government be allowed to charge interest on tax it collects from citizens.Tax is one of the income sources of Government and it forms a major part of its Income. We the citizens of India pay taxes to Government under the laws and rules framed by the Government only. We pay taxes out of our income, we pay taxes out of our expenses, we pay taxes whenever we spend even a single rupee.
Now, how much is this valid that Government should charge interest on the tax which is to be paid by the citizens. Even using the term interest on tax seems like the other is charging me for the income earned by me and the other has right over it not only to take a share out of it in form of tax as well as charge interest if there is a single day of delay.
If Government charges penalty, then that can be understood to an extent as there is a possibility that one defaulted deliberately but charging interest seems unjustified. The term itself seems very demeaning. Its like you are taking interest on income which you never earned, it is yours just by means of right.
Replacing the word interest at all places under all the existing laws with penalty will be more justified.
Do you feel the same or have a different understanding?