essay on the role of income tax in nation building
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Answer:
Role of Income Tax Department in Nation Building
Everyone wants facilities, better life conditions, advanced infrastructure, and general prosperity; however no one is genuinely interested to work to create them. This arduous role of creating these facilities, better life conditions, advanced infrastructure, and general prosperity and development requires lots of funds and capital which no individual can provide or afford. The Government shoulders this responsibility. And the tool that the Government uses to collect and amass this whopping amount of funds and capital, is the tool of income tax.
Funds and capital are not evenly divided among the people of a country. Some have abundant funds; some have moderate funds; some have meager funds, and some have almost no funds. The Government itself has no funds or capital; it generates funds and capital from taxes. Income tax is the most potent and effective medium to collect these funds from people according to their capability and affordability to pay the tax. The Government levies higher income tax on those who earn more. People who earn moderately, moderate income tax is levied on them and people who earn very little, no income tax is levied on them.
The Government acknowledges the contribution of individual tax payers in paying taxes within the prescribed time and prompt filing of Income Tax Returns. The Finance Minister, Arun Jaitley today handed over certificates of appreciation issued by Central Board of Taxes (CBDT) honoring select tax payers for such contribution. While it is widely acknowledged that the Nation meets its obligations towards spending in various social sector and welfare schemes and infrastructure development out of revenues mobilized through tax payments by millions of honest tax payers, this step marks the first effort by the Government to directly communicate to the tax payer its appreciation for that contribution.
Though people generally pay their income tax quite unwillingly, they fail to see that the revenues collected from income tax aredirectly spent on the national projects of development. It may be laying new roads or railways in the country’s less developed areas, states or provinces; it may be buying new defence equipment for the safety of the country; it may be setting up new heavy industry units; it may be providing subsidized fertilizers or LPG cylinders to the poor people of the country; it may be sending new rockets and satellites into the space; it may be constructing new hydel, solar, nuclear, or thermal power generation units across the country; all projects of national development are run and financed by this revenue collected from income tax. Besides, contributing to national development and security, income tax creates equality among the citizens of the country. It is a wonderful tool. And we must pay our income tax honestly for the prosperity of our nation.
Answer:
INCOME TAX
Income Tax is a tax taken by the government from the citizen. It is a percentage taken from the profits that are earned by them.
Income tax is a mandatory tax paid by each earning individual. The tax collected is then further used by the government for the growth and development of the country. The government as we know has got no funds of its own. With the tax money, the bridges, flyovers, and roads are made. Not only that but the money is also used to implement different schemes in various areas. Salary of the government officials, funding of farmers, and maintenance of government hospitals all over the country is done with the money. Now, not every individual has the same pay scale, so the tax depends on one person to another. The more the earnings, the tax slab is hence the more.
It is thus mandatory for every individual to pay their taxes. If not, the government would be able to provide the help and security of the citizens.