An impact of ‘Income tax’

Income Tax is a main source of revenue to the government. Income Tax is necessary for equal distribution of income and wealth in the economy. It stresses on income equality. We know that income tax is progressive in nature that is higher rate of tax on higher earnings. Government collect the income tax from individuals and companies who have higher earnings and spend that tax revenue on poor people in the form of subsidies, concessions, health, education etc. as public expenditure. Recently the Advisor to the Governor K.K. Sharma said that “Taxation necessary for egalitarian, developed society.” The Advisor said it is important that people pay their taxes on time as the same gets used for various developmental works which include constructions of schools, colleges, hospitals, bridges, macadamizing of roads and other like things. The Advisor said that the concept of taxation finds its root in our historical texts also and it has been used as a means for bringing a balance in the society so that equitable development of the society takes place and people enjoy the benefits of development. He said that the people by regularly filling their income tax returns are contributing their bit in building a strong and prosperous nation.