An individual should pay the government a part of his income, which is known as Income Tax returns. It can be regularly filed either in physical or electronic form. Tax is not just a source of income for the government in order to increase their revenues but a social obligation of a citizen. Payment of taxes ensures that government can perform all its obligation on time and through the proper way.
Taxes are collected in a pay-as-you-earn basis. The individual who earn very low amount need not pay any tax as there are specific criteria for the payment of taxes. Earning citizens who have their income more than Rs 160,000 per annum have to pay the taxes. If it is a women whose income is or exceeds Rs 190,000 per annum, she has to pay the taxes. The senior citizens are taxable if their income exceeds Rs 240,000 per annum.
By paying taxes, an individual can never demand government, the actual amount of benefits which he has paid for as taxes. The amount collected as taxes will be used for general welfare of the citizens, but not for the individual as such. An individual also cannot demand the benefits ‘immediately’ as it depends up on various factors of the government before taking any action. It will take time to get the benefits in the form of social welfares.
Government will use the funds through financing projects for developing the infrastructure of the country for development projects, construction of roads, flyovers and bridges. They are also used for building up management schools, orphanages, business, research and technological hubs.
Tax returns should be filed latest by the end of one year from the relevant assessment year. Under Section 139(4), the fail in the tax payments should cause a penalty of Rs 5000 u/s 271F. He/she will be liable to pay the interest u/s 234B. He will not be able to carry forward the loss and the deductions u/s 10A, 10B, 80IA, 80IAB, and 80IC will not be available.
Taxes are meant to create legal and moral obligation towards the society and government. They should come forward and willingly pay the fair amount of taxes which contribute as a source of fund for the Government.
Payment of taxes are the contribution by an individual with a higher-income, which is meant for the development of the economy of the country. So always be proud of doing so to pay taxes regularly and fairly as the nation’s welfare is in the hands of the citizens.