Arjuna (Fictional Character): Krishna, Valentine’s Month (February) is the perfect time to express your love in the most extraordinary way. Love is the essence of life, it holds great importance in the life of a human being. Love can be made towards people, things and money. The love towards money can lead to problems like demonetarization of currency etc which can further lead to more tax evaders in our society. Give detail information on this topic.
Krishna (Fictional Character): Arjuna, Love is the root of all the things we do in our day to day life. The base of all the relationships like Husband-wife, Parents, children, friend circle and youth is “Love”. The actual love is in the feeling of giving things, this feeling is important. For love there is money but for money there is no love. In today’s world everyone is running after money. Because of that everyone is trying to pay taxes less. India is a populated country but the count of tax payers in our country is less. Because of this, the burden of paying tax on Taxpayers increases.
Arjuna: Krishna, when does the tax payer regrets of not paying or less paying income tax.?
Krishna: Arjuna, there are many instances when a Taxpayer feels guilty of not paying or less paying income tax. They are-
1. When Penal proceedings like, Inspection, Assessment, Survey and Raid are initiated by Income Tax Department.
2. When Bank rejects or reduces loan amount due to disclosing less income in return filed.
3. When due to short cash or funds, a businessman takes “Book Entry” from other person and the other person cheats him.
4. Due to shortage of funds and taxed income, a person purchases property (Benami) in the name of other person and the other person cheats him.
5. Due to off shoot of enquiry from Sales tax, Service tax, Excise, Provident Fund, etc. major difference is found in Income tax details.
6. At the time of starting new business proposal with Big or MNC Law abiding Companies, for want of registrations under different statutes, proposal is rejected.
7. Problems faced in compliance of financial biding terms at the time of filing tender of Government or Companies, and tender gets rejected.
8. For increasing business, there is need of new partner or shareholder but problems faced in valuation of business, as taxable income is shown less.
9. Behaving like blind follower in business world, and following other non-tax complying people and paying less tax or no tax and getting caught without proper tax planning.
10. When there is shortage of bank funds for marriage, plot, house, gold etc.
11. When unaccounted property found on enquiry from Anti-Corruption Bureau of government salaried employee.
12. When financial quarrel occurs in give and take financial transactions with the nearest person such as relative, friends, partner, employees, Supplier, business competitor, etc. and fear of disclosing business secrets.
13. Adjustment made in Current year in expenses and income, but in next financial year due to those adjustments problem occurred.
14. At the time making insurance claim, problem faced due to showing less Further in instances of claims in cases of theft or burglary.
15. When Hawala or bogus Purchases and Sales transactions got exposed.
Arjuna: What taxpayers should learn from this?
Krishna: Arjuna, The effect of demonetization is borne by the people thus contributing in decreasing the love for the money in the country. Now every Indian citizen have to express their love for money by paying tax. Similarly the Government officials, political parties etc. also should express their love for the country by contributing to the growth and development of the country through the taxes collected. The tax evaders should lessen their love for money and by paying tax there would be no society left that would evade tax.
Republished with amendments