Do you like to pay income tax? Most (if not all) of people don't!
Go to any country, and ask. People will say that if they have an option, they will never pay any income tax. Why? Because they consider it as an injustice and don't see any value doing so. People pay income tax because the government "push" them to do so. Still, people try to avoid paying taxes whenever they can.
Making strict laws to threaten people, is the ONLY way all the governments follow to push people paying the income tax.
Here I would like to present a different concept... Attract People To Pay Income Tax!
To do so, the Government Of India (GOI) should do following :-
Let's consider, India is a family; Indians are family members; and the government is Parents (Mother and Father).
One family with family members - 3 brothers A, B, and C are living with their Parents. A and B earning good income; but C is barely earns something to meet monthly expenses. Parents take a cut from A's income to run the home. B and C are exempted to pay any money. Now how will A feel about this? He will be OK if C is not paying as C is not earning enough. But A will surely not like his Parents decision, to allow exemptions to B, who is also earning good money.
The same is happening in India. Here less than 4% people pay income tax and many people like "B" are enjoying exemptions. There are other factors too. Let's not talk more here as I have already suggested reforms, which will remove injustice and boost income tax compliance.
How about if you get some benefit for paying income tax? If the government adds value in income tax payment, then people will start loving to pay their taxes. Here are 3 (three) ways to add value to income tax payment for attracting people.
If the GOI implemented the above suggestions, it will attract people to pay income tax honestly and regularly. Actually, they will start loving it!
[ Blog: i Talk about Income Tax ]
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