Income Tax: The deadline for filing income tax returns is near. The deadline for ITR is ending on 31st July. At the same time, people are waiting for relief in income tax in the budget as well. It is expected that in the budget, the government can give some relief by changing the income tax slab.
Income Tax: The deadline for filing income tax returns is near. The deadline for ITR is ending on 31st July. At the same time, people are waiting for relief in income tax in the budget as well. It is expected that in the budget, the government can give some relief by changing the income tax slab. Amidst all this, income tax is in a lot of discussion these days. There are many people who have questions in their mind that why does the government levy tax on their hard-earned money? It is their hard work, then why does the government take its share in it? What do they achieve by paying their tax and what do they get in return?
What is income tax?
Income Tax is a type of tax that governments collect from the income of businesses and individuals within their jurisdiction. Rules and regulations have been laid down regarding income tax, according to which the taxpayer is required to file income tax returns to determine his tax obligation.
Why does the government take a share in your earnings?
The government collects its share in the money you earn with hard work as income tax. You have to pay income tax on your earnings. However, slabs have been fixed for this. In the financial year 2022-23, the government earned Rs 14 lakh crore from income tax. Whereas during that time about 6 crore Indian citizens had filed income tax returns. Year after year, the number of people paying income tax to the government increases and so does the income of the people. However, it is not that the government collects tax from everyone. Only those whose income is taxable have to pay tax according to the income tax slab. For this, income tax slabs have been fixed.
What does the government do with the income tax income?
Income tax is a big source of income for the government. It uses the income earned from this for development works, in running the administration, in different schemes, infrastructure development, defense, education, health services etc. It is your moral responsibility to pay income tax. By paying tax, you fulfill your responsibility. Development work in the country is done with the income of income tax. It is spent on various schemes like better roads, bridges, public transport, infrastructure, better education, better health services, security etc., which we and you use.
What is the tax regime?
There are currently two tax systems in India. New tax regime and old tax regime. There is no exemption of any kind in the new tax system. Tax deductions like 80C, 80D are available in the old tax regime. In the 2023 budget, the Finance Minister announced making the new tax regime the default, after which it became mandatory for all taxpayers to choose between the old tax regime and the new tax regime.
