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CA Sunil Goel Shares His Opinion On Payment Of Tax - Whether An Opportunity Or A Burden

Updated on: 04 September,2023 07:14 PM IST  |  Mumbai
BrandMedia | brandmedia@mid-day.com

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In between billions of people, there are not even handful of people who are being part of the tax reforms of India.

CA Sunil Goel Shares His Opinion On Payment Of Tax - Whether An Opportunity Or A Burden

CA Sunil Goel

 


In this current era of widely educated people still government phasing issues to make people aware about their finances and related departmental responsibilities.


The data shows that 7.4 crore people filed income tax returns in 2022-23. Of which 5.16 crore people, or 70 per cent, had zero tax liability. This means that just 2.24 crore people paid income tax in 2022-23.


While the GST is paid by consumers, it is conveyed to the government by the businesses providing the goods and services. Overall, there were over 13.8 million registered GST taxpayers during this time.

The only way to increase this percentage of registered people under the Indian Taxation System is “Simplification of the taxation system”.

People tend to disguise their turnovers due to the following possible reasons:

  1. A complicated tax filing system
  2. Lenient government regulations
  3. Tax Evasion purposes
  4. Increased tax burdens on specific transactions

A common Man’s dilemma remains: “Earning more will lead to increased compliance and burdens”

This, along with added ignorance leads to the piling up of expenses and acts as a spark to the fire.

Why it is important to file your income tax returns

Income taxes have always been a topic for debate.

Many questions arise from different perspectives when a discussion is held:

  • Is it really important to pay taxes?
  • The government does nothing for us even after we pay taxes!
  • What relief does a common man get after paying taxes?
  • Why do we need to pay taxes when the government is provisioning everything for free?

Reality is something else.

The majority of Indian society is unaware of how the government works, tax filing, its utilization and the economic system in general.

India is still a developing country and is striving hard to join the developed countries of the world.

Most developed countries have tax slabs. For instance, Sweden, Germany, Ivory Coast, Denmark, USA, Japan, Italy, Canada and more. These countries have more than 50% tax rates.

Thus, the structure of taxes in India is far better than in other countries of the world.

Why should you pay taxes?

  • Taxes are generally filed in India when people require loans.
  • Filing taxes improves our CIBIL score and makes our financial statements stronger.
  • It helps the government to enhance the law enforcement system which further improves the socio-economic design of our country.
  • Taxes can open opportunities for you and your business by making you a recognized person in the contemplation of the law.
  • Taxes help the government to quicken the process of economic development through business expansion schemes and transactions.

The above points clearly the the deep-rooted connection between Micro (individual citizens) and Macro (The economy). They explain how individual contribution plays a crucial role in the economy’s growth and development.

The most challenging task today is to bring public awareness and acceptance about tax filing.

The current population of India is above 140 Crores.

Sadly, even after numerous advertising and awareness campaigns, approximately 7.4 crore people have filed their income tax returns. Out of which only 2.24 crores have paid taxes which works out to just 1.6 per cent of the total population in India.

What is tax….

In layman’s terms, Tax is a charge against infrastructure cost that you used while living in a certain country in a specific state. You are continuously using the land of the state, the infrastructure of your state, the security, the environment. Thus taxes are charged against these utilities.

You can access extended resources that are helpful to speed up your work, and your economic situation, if you pay taxes.

To calculate the tax liability, you need to analyse your income and savings. And after this analysis, you try and find ways to increase these two variables. It is a good human tendency to try to increase the earnings. And the taxation analysis gradually helps you to earn better.

Benefits of Tax filing:

  • You can access additional benefits and schemes while being part of the taxation system.
  • You become more confident and realistic towards the financial decisions you make.
  • You are more aware and active towards government actions and decisions.
  • You might have vibrant ideas to grow your business to multi-state and later multinational.
  • Access to various government funds and loans become easier.
  • Registered businesses have better opportunities for representation due to legal assurance.
  • Your foreign transactions become hassle-free.

For more information visit - SRGA - Best Chartered Accountants Firms in Delhi, India

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