Introduction
Tax
Tax is the amount which is taken by the government or the state in order to flourish the country and to provide the facilities to the citizens of the country or state. The tax is paid on the income earned.The tax may be charged on different types of incomes. These incomes may include employment income, property income, capital gains income etc.
Need to recover the tax
There are many projects which are undertaken by the government in order to develop the country. These projects are undertaken for the betterment of the citizens of the country. All the projects which are undertaken by the government need a huge amount of financing. So, the tax which is recovered from the citizens becomes a source of finance for the projects undertaken by the government.
Paying tax to government
It is the responsibility of the citizens of the country to pay tax to the government. If the people of the country do not pay tax to the government, then the government is unlikely to provide the services to the citizens. So, it must be kept in mind that if the citizens are paying tax to the government, then it is being paid for their own betterment.
Detail
Tax return
Tax return is a document which is used to pay tax to government. On the tax returns all the incomes of the individuals or the organizations are disclosed and the tax amount is calculated. The tax return is returned to the government along with the tax amount. In this the individuals and the organizations pay tax to government.
Calculating the tax
In order to pay the tax to government, it is needed to be calculated accurately. The tax calculation is not easy. The individuals and the organizations may need to consult the professionals in order pay tax to the government.
Features
Tax legislation
Tax legislation states the rules and the regulations according to which the tax is calculated. The tax legislation of the different countries may differ. So, in order to pay tax to government, the respective tax legislation of the country must be considered. The tax legislation may not remain the same. The tax legislation is changed according to the requirements of the government.
Comments
Tax rate
The tax rate is the percentage which is applied to the incomes. By applying the rate of tax to the incomes, the tax amount is calculated. So, in order to pay the tax to government, the individuals and the organizations must be aware of the tax rates as the tax rates are not same for all types of incomes. Secondly the tax rates also change with the passage of time and they may not remain the same.
Responsibility of the individuals and organizations
It is the responsibility of the individuals and the organizations to disclose the complete information about the incomes of the individuals and the organizations. The tax authorities may check the incomes of the individuals and the organizations. If the incomes are not calculated accurately then the serious actions may be taken by the tax authorities against the defaulters. However, these are some of the ideas which are needed to be considered in order to pay tax to the government. These points might be helpful for understanding the importance of the payment of tax to the government.
