Advantages Of Paying Taxes

This is a question that many citizens have. Every taxpayer is benefitted in some way or the other by the tax they pay. If the citizens perceive the taxes as a benefit for their country, then the government has an incentive to keep taxes low.

There are also a few personal benefits that taxpayers enjoy for paying tax and filing their income tax returns diligently:

Loan approvals - Many of these loans are approved only if the taxpayers have filed their tax returns on time and have paid the taxes on time. You are required to submit your ITR forms for the past 2 or 3 years along with your loan application. Without that, your loan could be rejected by the lender.

Visa applications - Without a clear and complete payment record of your personal income, the Visa Officer will not approve your application. This is to ensure that you are not leaving the country to evade tax.

Serves as income proof for self-employed individuals - An individual who is a self-employed contractor or a freelance worker, is required to file his ITR forms and show the government his earnings. This serves as proof of his earnings. This in turn helps you get loans and credit cards.

To claim tax refunds - The government requires taxpayers to fill their tax return forms to be eligible for tax refunds. There are a number of deductions and rebates available to claim tax refunds. You can rightfully claim these refunds only when you file your returns. This is applicable for both personal income tax and all other kinds of taxes.

Contribute to the growth of the country - The government encourages taxpayers to pay their taxes on time, as it ensures the growth of the country. The growth of the country will lead to better jobs and a better life for all. Every time you file your income tax returns, you are contributing to the growth of the country. Every time you pay taxes, the government contributes to the growth of the country by increasing the government’s income.

Paying taxes is a basic duty of every Indian citizen

There has been an increasing clamour against various taxes and the prevailing tax rates in the country. Citizens claim: “I have to pay for my food, my housing, my travel, my medical treatment, and having a vehicle, which includes not only the cost of the vehicle but also vehicle tax and other expenses. Even on many roads, tolls must be paid!” They further argue that, in comparison to countries such as the United States and the United Kingdom, where citizens receive social security and medical care at no cost, India doesn’t provide such services to all citizens.

True, India does not give social security or free medical care in the same way that some affluent countries do. However, we must consider the matter on a bigger scale. We must recognize that the government has a lot of responsibilities, including health care through government hospitals (which normally provide free services), education, and so on (In Municipal and Government schools the fee is negligible).

The government uses taxes to fund a variety of welfare programs, including job-training programs, free electricity to farmers, free cooking gas to rural women, and so on. The government must bear the administrative costs of lakhs of staff in various departments. Despite the fact that the legal procedure is time-consuming, the salaries and benefits of Judges, Magistrates, and judicial personnel must be paid by the government. Thus, when we analyze the many responsibilities of the government, we must recognize that we must pay taxes in accordance with the law. We must behave responsibly as citizens and pay taxes on time.

India is growing, it is imperative to pay your taxes. Without the tax that you pay, the government will not be able to fund the necessary programs (health, education, infrastructure).

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