are taxes indispensible to the development of the country?

pramalkumarsamanta By pramalkumarsamanta, 23rd May 2015 | Follow this author | RSS Feed
Posted in Wikinut>Money>Tax

Tax is payable by all citizens of independent India. Taxes are imposed and collected by the different authorities of the central government and the state governments and the local self government so that money may be utilized for the construction of the buildings ,roads and ,bridges,canals,dams , creation of irrigation facilities and drinking water facilities, construction of modern hospitals etc of the country . . .


In India the tax imposing authorities are the central government, the state government and the local self government . The municipal authorities are the municipal corporation in city areas and the municipalities in town areas, the Gram Panchayat in the rural areas to impose tax on the citizens in the country.
The central government taxes are the direct and the indirect taxes generally imposed on the citizens. The major direct taxes are the income tax charged upon the salaries of individuals or the business men as per financial year. It is the bounden duty of the citizens to pay income tax as per the slabs fixed by the income tax authorities of the central government . Every citizen has to file income tax return stating his net income of the financial year to the income tax authorities . No income tax is imposed on the individuals whose annual is up to three lacs. Beyond that up to five lacs 10% tax is payable . 20% tax is payable up to rupees 8 lacs .Tax exemption is allowed up to one and half lac from the net income if the individual keeps the money either as life insurance premium or in the provident fund account or in the public provident fund account etc Health premium insurance up to Rs fifteen thousand is also exempted from income tax . The Drawing and Disbursing authorities and the banks deduct the money at sources(TDS) at the time of disbursement to the payees and the deducted amount are deposited to the income tax authorities .There are many other exemptions available according to the needs of individuals under the provisions of the relevant Act. .The corporate tax are payable by the companies to the income tax authorities on the basis of the net profit generated by the transactions of the concerned company.
The Central excise and custom duties are also chargeable on certain items of raw materials imported from the other countries and its manufacturing and processing for export to the other countries by the business organizations .
The service tax are chargeable on the independent professionals and the businessmen who render services to the society. The service tax is payable @14% on certain professional services. These are all indirect taxes levied on the citizens of the country.

Taxes imposed by the state government and the local self government

The state government impose sales tax, or value added tax (VAT) or goods and services tax (GST) when the goods are sold to the final consumers. The sales tax are payable by the consumers when they purchase the electrical and the electronic goods, the cosmetics and the fashionable items of dresses ,the wrist watches,shoes ,the gold ornaments etc.
The state government introduce professional tax on the salaried employees except those whose pay is Rs 5000/- per month. Rates of professional tax varies according to their scales of pay .
The state government charges land revenue according to the holding of the plot/ the parcels of the agricultural land held by the owner. in urban areas and in the rural areas .The state government charges stamp duties according to the valuation of the plot/ the agricultural land when the plot /land is sold .
The road taxes are payable by the vehicle owners at the time of registration of new vehicles. The toll taxes are payable for the use of newly constructed roads, bridges, tunnels etc.
Similarly local self authorities ,e.g., the municipal authorities or the Gram Panchayat imposes tax on the building plans at the time of sanction of building plan ,After new building is constructed. holding tax is imposed on a quarterly basis. .. .


The citizens have to pay taxes according to the capacity he or she holds. Those who are rich can afford to pay the taxes. But the poor may face the difficulty in clearing up the tax dues. If the tax dues are not paid in time , the governments may have to take legal steps against the tax defaulters. Willful defaulters are the real tax offenders. They should be punished at any cost ,flimsy grounds will not save them.


Corporate Tax, Income Tax, Incometax Return, Insurance Premium, Land Revenue, Professional Tax, Sales Tax, Service Tax, Stamp Duties, Tax, Tax Defaulters, Tax Exemption

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author avatar pramalkumarsamanta
I am a retired government officer.I am a postgraduate in life sciences, I have a passion for writing on any topic.

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author avatar Sivaramakrishnan A
14th Jun 2015 (#)

I get satisfaction that I pay more than what is needed as I don't follow up some refunds. I remember the days when the tax rates were 60-70%!

But I feel sorry that some think they need not pay tax at all and they are the wealthiest! siva

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author avatar pramalkumarsamanta
14th Jun 2015 (#)

Thanks for excellent comment.I fully agree with your views.

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