Taxation in India

A debate session was conducted on tax and its implications on an individual. Many issues were discussed in that debate. Those all points are put here for future reading. The first point that discussed was why an individual be taxed. Each citizen in the country wants good roads, electricity, employment, and provision of food and rehabilation during crisis. Every citizen demands for many things. How can the government provides these facilities? How can the govement gets the money to facilitate every citizen? So it taxes the earners those who utilizes all the facilities provided by government.

But citizen earns by serving a corporation, then government should tax only corporation as it earns the profit. The corporation utilizes all resources of people, infrastructure and subsidies and many more. Those just bag the profit and enjoy the manjor chunk of profit. Where as individual has insufficient amount to spend and save after paying taxes. The individual should be taken care by himself during out of employement. Government does not help him anyway. If the industry get sick, it gets the wavier in debt payments and subsidies in continuing the business.

If there is no industry, then where the individual works and so earns. That is why goverment encourageous and promotes the industry to get more employement for its citizens, and trade between contries and maintains self realization and self respect with other nations by participating in the global economy.

Goverment also helps the each individual by providing many subisides on paying taxes. It helps the individual by introducing tax saving investments and providing exemptions on housing loan interest.

Government does help both individual and industry to sustain their growth. But how many are very sincere in paying taxes except salaried people. Every person who earns on utilizing provided resource does not pay taxes properly.

If everyone is sincere, everything works fine. So the society should change. It should contribute and quesion the development. It does neither many times. But a set of people questions more, with contributing themselves honestly.

Government also formed by the same set of people, who does little bit and boost themselves more. There are good people who made rules, but rest are there to disobey the rules.

The next point we discussed was changing the existing policy for an individual. Subsidies are fine, but it looks to complex and government is going to tax those subsidies savings also while benifiting them. Tax policy should be something flat based on slabs. If that is set, everybody does their savings based on their interest. It reducess the burdern doing manythings before filing returns. It become easy for everyone to file returns. It encouregeous the each individual to file returns.