Why we need to pay taxes? And how tax system is working?

In India why we have lot of taxes and every year why there is an increasing in types of taxes?
Is tax money used properly or not?
What is the par of income tax,sales tax,property tax and service tax I mean who is the eligible person for these taxes?

2 Replies to “Why we need to pay taxes? And how tax system is working?”

  1. Taxes goes towards different budgets for different departments under the government. An increase in taxes merely increases the spending of the government.

    I am truthfully still naive about the pros and cons of a taxation system, however an increase in taxes means less money in your pocket.

    As my friend has always argued, there shouldn’t be any taxes to begin with because he believes the government shouldn’t have control over how your money is spent. Rather, you should have control over what you want your government should do for you, than letting them do everything for you.

  2. For the last five or seven year there is no new taxes,but there is decrease in tax rate – income tax rate on salaried person – every year income tax slab increase in other word less tax, surchase is omitted,custom duty reduced , no TDS for transporter if they submit there PAN no.FBT removed.
    If Govt. giving some tax relaxation, from where Govt. of India get money for there Developement work.

    Tax money is proper used or not is difficult to answer – loan wavier in crores of rupees, In some cases both responsible for improper use of tax money- reason what ever may be. What is needed is honesty for both end.

    Income tax is a tax on Income – Salary,Busines,House property,income from capital gain and income from other source- tax rate define by govt. of India from time to time & financial year in particular.
    Sale Tax – on sale of product by manufacture, whole saler,retailer & sale is also made against various like ‘C’ ,E, SEZ sale etc. and tax rate as defined by respective govt.
    Service Tax is charged on various service like hotel sector , airline,security agency so on as defined by the service tax act. 1994.

    When you are part of above catagory you will be eligible for tax subject tax slab & Limit crosses as defined by govt. from time to time.

    By the way can you provide us balance sheet of other than India so that there honest can be checked. You know in USA almost 9 bank became bankcorrupt rest we do not know.

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