Why Do We Pay Income Tax? (Question)

Why should we have to pay taxes?

  • Because taxes are the life source of a nation, we should be patriotic to this life source in order to keep the nation functioning. That said, tax is essential to help the government give us protection, build better roads and bridges, institutions and provide social infrastructures.

Why do you have to pay income tax?

The money you pay in taxes goes to many places. In addition to paying the salaries of government workers, your tax dollars also help to support common resources, such as police and firefighters. Tax money helps to ensure the roads you travel on are safe and well-maintained. Taxes fund public libraries and parks.

What are 3 reasons we pay taxes?

The 3 Primary Reasons Why You Need to Pay Taxes

  • Social Welfare Pack. Social welfare and social security are one of the greatest benefits the less privilege, homeless and those in need enjoy without having to pay back.
  • Sustain Government.
  • Avoid Tax Back.

Is it necessary to pay income tax?

Any Indian citizen aged below 60 years is liable to pay income tax if their income exceeds 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs. 3 lakhs, he/she will have to pay taxes to the government of India.

Can you refuse to pay taxes?

In general, it is illegal to deliberately refuse to pay one’s income taxes. Such conduct will give rise to the criminal offense known as, “tax evasion”. Tax evasion is defined as an action wherein an individual uses illegal means to intentionally defraud or avoid paying income taxes to the IRS.

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What happens if I don’t pay taxes?

You will not be given your refund. If you are found to owe the government taxes, the interest keeps adding up till you pay. If you are found to owe the government taxes money, then the interest keeps adding up till you pay. A penalty may also be levied.

What is the purpose of paying taxes in our country?

taxation, imposition of compulsory levies on individuals or entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well.

Why do government levy taxes?

Raising revenue. Taxes are the major source of government revenue. The government needs revenue to maintain peace and integrity in the country, to increase social welfare and to complete development programmes. Taxes are imposed to achieve equality in the distribution of national income.

Who has to pay tax?

You pay tax on things like: money you earn from employment. profits you make if you’re self-employed – including from services you sell through websites or apps. some state benefits.

Why do we pay tax in India?

The tax paid by us becomes a receipt (income) for the government of India. They use the receipts to fund essential expenses like defence, police, judiciary, public health, infrastructure etc.

What income is tax free?

Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes. Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.

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Why is income tax illegal?

It has been argued that the imposition of the U.S. federal income tax is illegal because the Sixteenth Amendment, which grants Congress the “power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration,” was not

What law says we have to pay income tax?

Congress used the power granted by the Constitution and Sixteenth Amendment, and made laws requiring all individuals to pay tax. Congress has delegated to the IRS the responsibility of administering the tax laws known as the Internal Revenue Code (the Code) and found in Title 26 of the United States Code.

How can I avoid paying taxes?

Recommended ways of saving taxes under Sec 80C,80D and 80EE

  1. Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
  2. Buy Medical Insurance, maximum deduction allowed is Rs.
  3. Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.

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