Arjuna (Fictional Character): Krishna, Valentine’s Day (14th 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, what are the points that Finance minister mentioned in the budget for this tax evader society?
Krishna: Arjuna, In Indian financial structure actual tax computation, income and its use is not as it is estimated. To clear this they have presented some statistics.Like there are 4.2 Crore people employed i.e having salary income but there are only 1.74 employees who file their Income tax returns. There are 5.6 Crore small scale traders but 1.81 Crore file their Income tax return. There are 13.95 lakh registered companies but only 5.97 companies file their Income tax return.From the above there are 2.76 lakh companies which shows loss or no profit. These are the figures who file their Income tax returns in our country.It is clearly seen that many people who earn income are not filling their Income tax returns. If we see the figures with reference to the tax slabs then in financial year 2015-16 from 3.7 Crore people there are 11 lakh people who have their Income shown below the basic exemption limit i.e below Rs2.5 Lakhs. 1.75 Lakh who have shown their Income between 2.5lakhs to 5 Lakhs. 42lakh people have shown their Income between 5 lakhs to 10lakhs and 24lakh people have shown their Income more than 10lakhs. And only 1.72 Lakh people have shown their Income above 50Lakhs.To its contradiction 1.25 crores cars were sold in last 5 years and in the year of 2015 more than 2crore people went abroad for tourism or for business purpose.This shows that due to love for money people spend less on tax and more on enjoyment and entertainment.
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-
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.