Income tax is defined as the tax imposed by the Government of India on anyone who gets income in India. In simple terms, suppose if your parents, since they run the family, make it compulsory for you to contribute a small part from your earning to pay for the family’s common spending, such as electricity bill, house rent, etc. This will make you a responsible member, right? Similarly, this is what is exactly done by the government. The revenue contributed in the form of taxes is used for the development of the nation. Hence, here are a few important points that illustrate the benefits of paying our taxes honestly:
1- Income for running the government:
Government functions just like an organization or company. Like an organization, government too requires good infrastructure, utilities, people, and equipment. Similarly, in order to take care of all the needs, it requires finances too. So, have you ever wondered where does the government receive all its finances from? Of course, from the taxes that we pay. The income tax payed by us are used to remunerate government employees, administrators, officers, and for other significant things that are required to run a government sector.
2- Public utilities and amenities:
During election campaigns, our representatives make several promises such as construction of highways, roads, over bridges, free medication, free education, etc. But, after elections we usually make complains when these promises are not fulfilled by the government. We blame government in every possible way. Although, we forget the fact that government will only be able to accomplish these commitments if we pay our income tax on time. In short, our taxes are what help the government to implement these plans on time.
3- Free education and medical care:
The tax that we pay helps many underprivileged people to receive good education and proper health care. For instance, the government schools and hospitals in almost every city are built from the revenue contributed by income earners in the form of taxes. Only because of the income gained by tax payers, government is able to make plans of free primary education or college education for the under privileged.
4- Social Responsibility:
Paying tax is just like casting votes, a responsibility of a citizen. It’s our social responsibility towards our nation to pay the right amount of tax. The taxes we pay go to the government funds and thereafter, these funds are used in improving or developing government facilities. In simple terms, if all income earners pay taxes on time, then this will help the government to support its objectives, such as building schools, making roads, and to improve government services.
5- Social and national security:
What will happen if you dial 100 on your phone and nobody comes to help you during an emergency? Or if somebody snatches your wallet and there is no police station around to seek for help or to file a complaint. Such situations will become a reality if everyone starts avoiding tax and refuses to pay it. In fact, both internal and national security forces are supported by your taxes. Therefore, the taxes payed by us are what help the government to pay for police forces and other security sources.
Thus, the next time if you think of evading taxes, keep these above mentioned points in mind that briefly explain the importance of tax payment.
Want to know your taxes? Access our easy to use tax calculator, and plan your finances.