Tuesday, November 24, 2020

Why is tax levied?

 Let us know why tax is levied. In every year's budget, the news which remains in the most headlines is the tax related news.  Every section of the person wants to know that this year he will get relief in tax  or how much tax will have to be paid.

In such a situation, you will also want to get information about tax , so today let's talk about tax and know why tax is levied.

Why is tax levied?

The government has to make a lot of interest to give the facilities to their citizens so that the government can provide better features to the citizens and institutions coming to their jurisdiction. Apart from the basic features like road, electricity and water, health services, education, there is also a lot to spend on security and administration.

Apart from this, the subsidies given to farmers and poor people are also part of the same expenditure. Two types of taxes are imposed by the Government of India to fulfill this expenditure.

First Tax - Take part in some of the earnings of the people, which is called Direct Tax or Direct. Income tax comes in this category.

Second tax - Taxes on the use of services and items i.e. indirect tax or indirect tax. 

The biggest tax income tax in Direct Tax is only and the government collects income tax from all those citizens and institutions whose income comes under the purview of paying tax.

Income tax return (ITR) file is done to give income tax and can be imposed up to Rs 10,000 on delaying the income tax return file, so it is a sensible and awarely citizen of the country by paying taxes.

Hopefully tax is imposed on aware  that you will liked this information and prove to be beneficial for you.

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