Contribution of Income Tax in Nation Building

Contribution Of Income Tax In Nation Building
By-Aditi Mantri
Amidst a chaotic and an forever changing era of globalization and industrialization, in spur of the
moment, any citizen of a developed or developing would long for development of theirs as well as their
nation in every stream of infrastructure. We, as the residents of a sovereign, democratic country, the
rule we pride upon, deserve enough to ask the aforementioned question in a reputed manner. We’ve
chosen and made the fortune deciders of our country but in a citizen-aware era, focusing so much on
our rights, we often evade our duties as citizens.
As success demands proficient, sufficient deposition of hard work by the aspirant, similarly nation
building demands an amount of deposition and feedback from its citizens in the form of social,
intellectual as well as financial duties. We have to understand and further undertake our duties
legitimately. A mannequin attitude wouldn’t give us a conveyer belt production!
A major portion of our duties are constituted by our deposition of revenue. Every year, the
functioning government demands a minimum portion of our income in the name of ‘tax’. Citizens are
obligated to pay a part of their earnings as tax and hence income tax can be defined as a tax levied
directly on the income of an individual. But this only defines income tax literally; the uses of income tax
are next to endless in an economy.
Stating the country’s status towards the obligation and its fulfillment, our statistical data puts us in a
really delinquent attitude. According to a survey conducted, 89% of Indians consider that hiding their
incomes and escaping the income tax isn’t offensive and against the law. The need of the hour is to
educate our population about this. Moreover, stats from the economic times reveal only 4% of the total
population pays the income tax returns while only 5-6 voters out of every 100 voters admit paying taxes
Income tax is monitored by CBDT (Central Board of Direct Taxes) headed by the finance minister of
the country, currently the position is occupied by Mr. Arun Jaitley. The distribution of the funds
culminated through tax in various strands is majorly managed by this department. The CBDT and FEMA
(Foreign Exchange Management Association) remain close and maintain proximity to nitpick the
deposition of illegitimate currency.
The tax which we pay isn’t the money that quenches the hunger of ruling politicians, a misconception
that Indians have developed over the years. Income tax isn’t another way of drenching the public
pocket; it is an instrumental restrained fund.
About 15% of our income tax is in the training, recruiting and up gradation of the defense ministry of
our nation. Majority of our country’s people defy logic by first not paying tax and then by rambling
about the poor and fragile management of military. Basically, the tax is further divided in the defense
ministry for the up gradation of warfare and providing an ample amount of variety.
Nearly 13% of our taxes go in the repayment of our national debt. The major departments our rule
spends upon include:-
(i)Agriculture
(ii)Employment Generation
(iii)National Debt
(iv)Foreign Aid
(v)Military
(vi)Health and Medicare
About 0.5% of income tax has been spent in the past year on ‘Swacch Bharat Abhiyaan’, a movement
that created waves in the country.
Talking about the stats, only 80 lac people of our country disclose their income to be above 10 lac and
out of these around 52 lac are salaried persons. With a GDP growth of 6.5 to 7% (which decreased
because of demonetization, earlier 8 %) these numbers are pretty hard to believe. Only 4% people have
legally paid their returns and in a more shaming outcome more than 50% of this tax came from only 2
states, Delhi and Maharashtra. Only 3 persons of our country pay more than 100 crores of rupees as
taxes.
We aren’t able to understand an extremely basic logical obligation of ours, the repayment of taxes
isn’t an added expense, it is not something our country has punched us up with; it is that resource of our
country that is much required to further people’s cause.
Foreign bank deposition, hiding incomes, black marketing are some activities majorly because of the
complicated income tax structure. Our structure has been distributed in 3 major slabs (5%, 20%, and
30%). According to our incomes, we can calculate the amount of our income tax returns and file it
before a given deadline. In the times of demonetization, an economic amendment majorly performed
with an intention of putting a full stop to this theft, the government increased the deadline and gave the
people a chance to whiten their transactions by depositing their tax and paying 45% of it as penalty. This
is majorly to contribute a simple and strict message to the people about the severity of punishment to
serious offences. Talking and rendering criticisms about mismanagement and delinquent handling of the
country’s resources seems easy enough but to understand the root cause seems like a complicated issue
to our active citizens.
The equation is simple, “If you are criticizing the government for its every deed and its consequences,
you have to be ready to face the obligation you are ought to mention”.
If the numbers keep decreasing like this, one day, this might be the major reason of our country’s
retrenchment of our country from the global market.
Even after not paying their amount, majority of citizens have the audacity to admit the crime on an
open base. This is alarming towards our drenching national treasure.
Income tax comes under the category of direct taxes, it has a complicated structure but our nation has
authorized bodies that can evaluate amount for us.
A person is exempted from income tax if his/her income is lower than 3,00,000 and 2,50,000 if they’re
above the age of 60. The need of the hour is to aware the countrymen about their duties and
obligations.
A large enough portion of the country’s population s engaged with an occupation that doesn’t
necessarily disclose the person’s income on open books and therefore the deposition issue has to be
sorted out by defining the pros of the duty so as to intimate them with its benefits.
Income tax payments not only provide you with a better and progressive society to live in, but it also
safeguards you from allegations coming aft the year.

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(vi)Health and Medicare

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