Paying taxes is an important affair in every individual’s life. This is the basic duty of a responsible citizen and you can contribute towards the national growth. However, the payment method and the percentage of income that needs to be paid to the government depends upon the country, the age of the individual and the occupation of the individual. Additionally, there are also certain conditions based on which an individual can claim tax exemptions. Here are some of the major reasons why one should file their personal tax return:
1 – For national improvement
Every sector in our country needs financing for further development. If we as a citizen does not pay our taxes, no government can provide development as there will be no money to work with. Ever since the dawn of civilization, taxes have been an integral part of every country’s economy. The taxes are further divided into direct and indirect taxes. Indirect taxes are ones which are levied on the consumption of certain goods and services. Here the consumer pays a part of their buying price indirectly to the government. Direct tax, however, refers to the sum that we need to pay to the government as a personal tax return. This is generally a big part of our income. This fund is utilized by the government for the following activities:
- Administrative services like police and external affairs.
- Infrastructure building.
- Defense services.
- Improving general economic services.
- Agricultural development.
- Setting up of power projects.
- Development of Transport and communication systems in the country.
- Public works.
- Grants and subsidies.
- Disaster management and relief in case of natural disasters.
Knowing all above reasons for paying personal tax return, one can understand that, it is a small contribution to nation building which also affects us positively. All the services that we get are also a major positive contributor to our daily life.
2 – Social Packages
Depending upon the country there are several social welfares programmers and packages available to benefit people. These include free healthcare to subsidized education to subsidized food grains. All these factors help individuals lead a comfortable and easier life. This is a major help for people with low income and helps them sustain their daily life comfortably. This is only possible for the earning of governments from direct and indirect taxes. Here again, you get another reason to pay your taxes. That is to contribute to a humanitarian cause of the overall development of individuals. These welfare programs are also responsible for the overall development of the standard of living in the society.
3 – Exemptions
Generally, most of the governments appreciate social and charitable work. In case you showcase your noble actions, most nations provide tax exemptions. Even in cases of running loans or savings, some of the nations have provisions for reduction of the percentage of tax that needs to be paid. These are certain measures that ensure a certain part of relief for the taxpayer. This not only allows you to save money for yourself or contribute to the society but also lessens the burden of high taxes that need to be paid.
From the above-stated points, one can easily understand to figure out the need to pay taxes. But paying taxes is not an optional task but rather a mandatory and enforceable task. Malpractices like tax evasion are not at all appreciated and there are numerous provisions for penalties or even jail term for these sorts of misadventures. You are advised to pay your personal tax return on time to be on the good side of the law and prevent legal hassle.