Pre discussion on taxation

Q1 What happens if we do not pay tax?

Ans-If you do not pay your income tax then you may fall into problem. It is also possible that
you doesn’t get noticed and nothing happens.

It depends largely on the fact that how you gets your income. For example if you are giving
tuition to some students and take fees only in cash then its likely that you doesn’t get into
problem. But if you are receiving large amount in bank then you may not escape.

Also another factor is the large expenses and investment you had made. If you had buy a car
worth 20 lakh and giving your pan while buying then you are most likely to get the call.

In either case, It is strongly suggested to file the ITR and pay taxes. Otherwise we may end
up paying hefty penalties. If we are in the taxable bracket, we must file the income tax
returns. The IT department reminds taxpayers to file income tax returns for every assessment
year. In order to avoid last minute rush, it is best if you file income tax returns well before the
deadline. In case someone misses this deadline, he/she can still file the income tax returns
but in that case, it may invite a penalty of up to Rs 10,000. Besides this, a delay in filing of
income tax returns also makes us liable to pay interest. If income tax return is not filed within
the due date, the taxpayer will not be allowed to carry forward any loss under the head profits
and gains of business or profession or capital gains.

Q2 How is the tax revenue utilized?

Ans- It is the income which is gained by the government through taxations. Taxes are the
primary source of government revenue. The government utilizes this taxes on the public
expenditure. The taxes go to fund health programs of the people. The taxes also help to pay
for the national defence and the security-related programs of the country. More than crore of
Indians receive social security benefits from the government. The taxes are also utilised by
the government in paying off the debt. It also covers the pensions of the veterans their
education program, healthcare facilities.
It also helps in providing food and agricultural benefits. It helps in improving the facilities of
education system like the government schools located in the rural areas and providing
education to the poor as well. Taxes are used to improve the infrastructure of the country like
building of roads, buildings, government complexes, etc. Maintenance of public areas and
creating transport facilities for the people.

Submitted by- Tarunvir Kukreja

R.No.-1820335