Why is Paying Income Tax a Human Right and a Civil Duty?

Apart from paying Income Tax, there are several other forms of taxes, which Indian citizens have to pay as per law. When you are doing a job, earning money, you pay income tax. When you buy stuff from the store, you generally pay sales tax. As we can not come up with every such example here, just giving a brief thought that the forms of paying taxes in our day to day life are many.

The basic question, which rises here: Why should we pay tax? And the simple answer to this question is: Paying taxes is considered a communal obligation. Our government including legislators have made laws and they receive money in the form of taxes, which is for our future sake only. The money you pay in the form of taxes returns back to you in the form healthcare medical facilities, educational facilities, cooking gas subsidies, infrastructure developments etc.

The government does maximum efforts for the citizens so that they can avail a bulk of facilities, which is their right and for which they pay from their earnings. This money is used to initiate various welfare projects like employment programmes. Despite investing in enormous schemes, the government pays salaries excluding perks to employees. Perceiving these duties, we have to appreciate our ruling bodies for doing brilliant efforts for us and that we must pay tax as a responsible citizen.

Income Tax Limit that is Below the Average Income of its People

People believe very few Indians pay income taxes because millions of them hide their income to evade taxes. But it turned out to be a big myth. Many researcher, and experts believe that India’s Tax structure is the major reason behind this theory. India’s Tax structure is designed in such a way that a very small percentage of people come under radar of taxation. According to the calculation of India’s inequality, it can be observed that only 3% of working people earn three times the average per capital income which means only 3% of Indian earn above 5 lakh. If we talk about other countries, only 5% of Americans earn 3 times of their average income, 4% British and 3% of Chinese. Thus it is clear that India has a very low income tax base, it is also clear that people are not hiding their income, but the income tax limit here is very high, so most Indians automatically fall out of the tax bracket.

Do not Consider Paying Tax as a Burden

Many of us always try to escape from the situations where we have to pay tax as it a human tendency to avoid paying taxes. Even when tax rates are lowered down, our country, unlike other developed nations, lacks desired tax culture. The Justice Home of the US Supreme Court says “Taxes are the price for civilization”. When the tax rates were exorbitant in earlier years, the scenario was the same and it is the same even now. No change has been perceived when the rates are highly minimized. The tax duty is also considered to be burden on almost every Indian citizen as in the case of emergency, the individual will likely to seek the attention from his family and relatives rather than asking it from government knowing that the government will always make a delay in the matter, this has emerged to be the reason when in absence of social safety or depriving health care in late years. Also, the general mindset of the public is stuck towards the give and take formula leading them to ask before paying.

It is Important to Boost up the Tax Culture

• In spite of doing substantial efforts for expanding our tax base, we are lacking in it. From over a population of 121 crores, there are about 35 million who pay tax (merely 2.9 percent) from which the employees who earn an annual income of above one crore are only 42,800 (negligible for the country). About 45 percent of the US population pays taxes when compared to India. The reasons behind this could be many. Perhaps, Indians do not earn that much to pay the taxes would probably be one of the biggest grounds. A large pie consists of rural sectors, which forces the lack of tax culture.
• Another big reason behind the avoidance is that a taxpayer perceives the process of paying tax as extremely complicated, contradictory, inefficient and corrupted up to the certain extent. Though, the majority of the Indians now pay tax and making honest efforts to be the responsible citizens of the country.
• What we achieve at present is very less as compared to the potential for the tax collection. But, if we move like this and put serious efforts into the development of tax culture, that day is not far when India counts in the list of one of the major tax-paying nations worldwide.
• In order to enhance the tax base, the authorities have started focusing on non-filers and stop-filers. As per the reports from Credit Suisse Global Wealth, the country upholds roughly 1500 individuals who have a wealth of more or less $50 million and 700 those who have beyond $100 million assets.

Causes Behind Lack of Concern of the Government and the Taxpayers Towards Paying Tax

• Most people think of it as a heavy task and avoid it.
• Individuals paying tax feel the tax provisions are beyond their reach and extremely complicated. Besides, they are being treated harshly and the tax laws are being applied to them ruthlessly. Therefore, they escape away from the tax department and resultantly, the count of non-filers is enhancing day by day.
• Both, the taxpayers and the tax collectors have to discharge their obligations equally. Only then an adequate tax culture can be achieved.

Constant Change in Behavior of Taxpayers

The tendency of taxpayers paying tax is increasing constantly. At present, the young business entrepreneurs are paying proper tax, which is truly overwhelming.

Education of Taxpayers

To have a well-structured tax culture, it is very necessary to organize meaningful and noteworthy taxpayer’s education often. Moreover, it should be available to the taxpayers’ departmental publication in their regional language (first and foremost), Hindi and in English.

Encourage Students as Well

Apart from focusing on the education to the taxpayers only, we should also boost up our teenage generation and guide them that how much important is this to pay the right amount of tax for the development of the country.

Final Words

Before resting the words here, we just want to say that paying income tax as well as other taxes is our legal obligation, which we should follow honestly. Take a pledge to aid in developing tax culture and encourage a maximum number of citizens to pay tax on time and furnish the return within prescribe interval.

And in this same league, the Rajasthan has topped the income tax return figure by INR 9 thousand 6 hundred crores to a good number of 13 thousand 4 hundred crores. This has given some hope to the Income-tax department properly run the organization action responsibilities and will also boost the economical conditions of the Rajasthan. The message is simple as to contribute whatever is earned in a ratio in which a society development is possible. The benefits are seamless and can be accredited to the goodwill of the development of geography and upliftment as both.