Need of Taxation

  • 18 December 2015 | 1151 Views | By Mint2Save
Mint2Save

Every Government  has to take responsibility to ensure a safe ,secure, and fearless atmosphere for the common citizen so that, he can live a happy life  by earning  every day bread for self & family and other dependents; given an unbiased opportunity to exercise his all rights (fundamental and /or otherwise) while making arrangements for lively hood like business, agriculture, enterpenureship of an industry, enterprise and so on; get facilities for health,treatment, education etc; have well crafted/made and maintained  infra structure for transportation & travel like Roads, Air and Shipping, security at the borders and with in the territory  etc. and, what not.

 

Development of India
Infrastructure

Providing all these, requires  money/fund and, this money  does not grow on trees or comes from air or water or likewise sources,  to the authorities/state/Government.But, it has to be contributed by each and every individual of the society/ state/nation, as the case maybe. Then comes the question How and, mode of contribution. Certainly not by donations by individual or group in a discretary manner.

The State/Government makes it  obligatory/mandatory /compulsory , to pay a portion of earnings by way of business, employment, enterprenureship and so on ,by an individual and/or group in the form of company/industry/instituition and so on.The revenue so collected/earned by the governing authority enables it to plan & invest for making basic provisions for citizens to have basic facilities for living and up-liftment of  society keeping and safe guarding the interests of each unit (individual and family) of the social structure.

 

India Income tax

This includes in the  duties of state/governing body  to regularly govern &  monitor the utilisation of the funds so accrued for providing potable water,food, education, safety & security  etc. on and with in the borders of the state in addition to ensure effective steps be taken regarding making provisions for providing opportunities in the context of  employemnet,buisiness opportunity, irrigation, electricity  and so on, in a manner that is affordable for each unit of the society.

This mandatory contribution made by each individual and /or group is coined the term Tax which in turn can be calssified in to many a forms viz. Income Tax,Sales Tax, Wealth Tax, Corporate  Tax, Octroi, Excise, Cess on tax for Education,Health Services, VAT etc. etc.

But, then every one(Individually or  group) can not be not asked to pay tax. For example, Income Tax is not paid by every one. Only those,who fall below a  prescribed slab of minimum annual income shall not be asked to pay income tax and thus falls under the category of `exempted`. But, rest is/ are supposed to pay income tax as be prescribed under provisions of the related  Act & related rules. Certain provisions are made for those having an annual income above the said slab, if the make investment in  ceratain approved schemes like Life Insurance, Medical & Health Insurance, Provident Funds etc., to a certain extent, may get, complete or partial exemption in paying income tax. Same may be a pattern for other types of taxes,too.

To compute the tax of any type/category, various types of Act & Rules have been formed, notified by the legistlative authorities( say by the Central Government or the State Government as the case may be, per their jurisdiction and powers.)

In nut shell, you may realize the importance of payment of taxes or investments made to obtain full or partial exemption in payment of taxes for [planning & investing for the benevolence of common man to live a happy life.

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