Filing your tax: The indirect incentive

The common notion about filing tax return is that the government needs money to build the nation and the money should come from the public only. Well there is nothing wrong about this notion but we always miss the larger picture. 

If you look at the bigger picture you would find that only 3-4% of our population is paying income tax. Do you really think only 3-4% population is earning enough to pay tax? And the nation is resting on the shoulders of these 3-4%? No. The tax that the government receives from this percentage is not enough to run the nation. Forget about building infrastructure, this much money is not enough to meet even the government expenditure. The government is left with no choice than to increase the indirect taxes and the corporate taxes which have a toll on the spending behavior of the public and the investment planning of various corporate houses. In addition the government has to borrow a significant sum.

What we fail to realize that we are paying taxes for our own good. The tax that we pays greater return in an indirectly through the road infrastructure, the sewerage, the police security, law and order, the railways, and what not. Who should pay the bills if not us? There are still more than 60% of population who are living at a daily wage of Rs. 100 or less. Who would take care of them? Who would fight if our borders are attacked? Freedom is not free. It comes at a price and the earlier we realize this is best for us.

There is still a large chunk of population who don't file their return either because they don't know how to file or they don't have taxable income. No matter what it is important that we still submit our returns. Especially the businessmen who fail to file return. Think about how much damage you are doing to the nation by not contributing your bit. The salaried people are paying taxes through TDS but failing to file return would be foolish as there are numerous personal benefits of filing return other than the indirect benefits mentioned earlier. (you can find it here)

“I’m taking the #TaxPledge to file IT returns with the easy Income Tax efiling option from H&R Block at BlogAdda.”