You can never escape the Indian tax system. There is such a trap of track system in India that your entire life’s earnings also go to tax. And you don’t even know.
Everything you buy is taxed. Apart from this, there is a tax on the work you are coming. Apart from this, there is also tax on your life.
If you are thinking that your income is less than ₹ 500000 per annum and you have escaped India’s tax system. So you are thinking wrong. Even if you earn ₹ 1, then you have to pay tax.
The tax system in India is from the beginning of life
You have to pay tax since you are born. If you are admitted in a hospital and you are born there, then you will have to pay tax on medicines there. Apart from this, you will also have to pay tax for the expenses incurred on your birth. After this, as you get older, things are bought for you. They are all taxed.
When you go to school for studies, then all the things which are used for studies are heavily taxed. In such a situation, there is no tax here. The biggest drawback of the Indian tax system is that most of the items here are imported from abroad. A large amount of tax is levied on goods imported from Vide. Which can be equal to or even higher than the price of the item.
Tax in India even after purchasing the item
If you are thinking that you have bought something and after that you do not have to pay tax. Even then it is your fault.
Now when you get his maintenance done, then you will have to pay tax. Apart from this, the road tax is charged for coming to you. Even after that, you have to pay tax in the form of toll tax. In such a situation, if you have bought any means, you are thinking that after paying road tax, you have become free. Is wrong.
The tax system in India is such that there is tax on tax here. We understand here by road tax. When you buy a new vehicle, you are charged a tax in the name of road tax. But when you go on a highway, there is a separate road tax. Which is called toll tax. It is said that you will have to pay more tax for better roads. But when you have already paid the road tax while taking the car. So what is that? There is no answer to this.
Tax even after buying a house
There are so many taxes in India that your mind will be shocked. But you will not remember the number of taxes levied in India’s tax system.
You will have to pay tax even after buying the house. You have to pay a separate tax for the registry. Apart from this, Municipal Corporation charges you separate tax at home. Also, if you have to take a connection of sewerage then you have to pay tax. Tax has to be paid even if you have to take water connection. Such is the tax system of India.
If you are thinking that after buying a house you will not have to pay any tax. Even then you are thinking wrong. You will have to pay tax for sewerage every month after purchasing the house. Apart from this, tax will also have to be paid for road maintenance and other expenses. In such a situation, you are not tax free even by buying a house. If you are thinking that you are free, you are still thinking wrong. Because you have to pay all these taxes for life.
Also you pay EMI. Apart from interest, you have to pay tax on it. In such a situation, you can understand how much tax you have to pay.
India’s economy is tax based
In fact, the entire Indian economy is tax based. Nothing here can be individual. The biggest drawback in India’s economy is that everything here is taxed. Whereas there is a fundamental difference regarding this abroad.
Business is promoted there. Whereas, tax based system is being promoted here. Income tax can be threatened if a person is threatened. Governments have put a fear among the people about tax. And the Government of India is taking advantage of this.
In India, the government itself does not earn a single rupee. Whoever runs the government companies is all in loss. In such an India, there is no other way for the government to collect taxes from the public.
Apart from this, scams are also a big problem in India. Every year the Indian economy has to pay huge price scams. This money also comes from the pocket of the public.
There is also a major flaw in India’s election system. Whenever elections are held in India. So political parties spend billions of rupees on elections. While the Election Commission has imposed a fixed limit on election expenses. But no one believes him. Election spending is limited only on paper. By the way billions of rupees are spent. And this money is given by companies to political parties.
And when private companies get contracts, the government benefits them unfairly. In such a situation, the government of India incurs losses of billions of billions of rupees every year. And this deduction is also fulfilled by the pocket of the public.
Apart from this, if you buy an item, then you also have to pay tax on it two or three times. The central government has levied a separate tax on an item. While the state government levies tax separately.
Nowadays, CGST is being called SGST. Apart from this, Municipal Corporation located in districts can also collect tax separately from you.
Here you can understand from the example of tax on petrol and diesel, how much tax based system is heavy on the economy in India. The entire Indian economy is based on tax. India’s economy is running due to tax on petrol, diesel and alcohol
Governments had to resume liquor sales in recent days when the lockdown took place. Because petrol and diesel were not selling. While doctors were advising that the risk of corona virus would increase even more by things like smoking and alcohol. With this example you can easily understand the Indian tax system.
What is the tax system in foreign countries
If you look at the tax system abroad, then Indian tax system is completely different. There is only one tax on an item. You do not have to pay tax again and again.
We understand from the example of Australia here. In Australia, when you have to buy something, you have to pay the same tax. And that too less than half of Indian tax. When you buy an item in Australia. So you have to pay 10% tax on it. The tax system there is also less complicated. If you want any item, you will definitely have to pay 10% tax. No more tax is charged from you. Should you be buying expensive sports brothers or 1 kg of lentils.
Also, there is no separate tax system for the Center and the States. Only you have to pay 10% tax. For this reason Australia, America and European countries also come up in the ranking according to the business environment. Whereas Indian and Asian countries are far below the rankings in terms of ease of doing business.
There is a need to reform the tax system in India. Which cannot be rectified till date. However, when the new government comes, it promises to implement economic reforms in India. But it does not appear to be happening.
In most tax-based economies, you will only see countries in Asia and the African continent. Because all these countries are economically backward. And here, there is no other way than to impose heavy tax on the public.
Goods imported into India are taxed equal to or even more than the price. Here we understand the example of iPhone. If an iPhone model is launched in the US, it is around ₹ 45000. While the model of iPhone comes to India more than ₹ 100,000. While people understand that Apple is selling iPhone expensive. Whereas the reality is that tax is charged in India equal to the cost of iPhone.