Advantages Of Direct Tax In India

Taxes In India

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Advantages of Taxes In India

A direct tax is a type of tax which is paid directly by an individual or ventures to an establishment such as income tax or land tax etc. The taxes are based on the ability of a payer; the person with high capacity needs to pay the tax higher than others.

There are different types of taxes which have different rules and regulations. Here are some advantages of direct tax.

(i) It Promotes Equability:

The load of direct taxes cannot be changed, but the equality of oblations can be accomplished through the progress of work. Everyone is charged differently with different amounts, and how much they can pay. The taxes are meant to be progressive.

It cannot be achieved if the taxes are on products or some items, which becomes a burden for both rich and poor people. The tax can raise the price of products for both rich and poor.

(ii) It Promotes Economically:

The cost of collection of direct tax in India is less and are collected from the source only. The income tax is subtracted from every individual’s paycheck. It helps to save the expenses and means progressing economy.

(iii) It Promotes Certainty:

In the case of direct taxation in India, the payers of the tax can know the due amount which should be paid. The authorities allow the revenue to be paid with an expected time period. This keeps equality between both the side and decreases the corruption possibility on the part of the officials. This is a fair way towards the citizens of the country.

(iv) It Promotes Elasticity:

If there is suddenly need of some funds for the state, corporate tax in India can serve well to the purpose. The submission form the income tax or death duties can be increased easily by raising the price of tax. The good part will be that there will be no pressure for death duties. The responsibility of paying the taxes will not be pressure, and there will be no delays too.

(v) It Promotes Productivity:

Another morality of direct tax example is that they are very productive. As the community expands, the returns grow automatically and profits for an individual. Productivity brings excellent opportunities for the citizens of the country. The promotion also helps for self-improvement of a citizen, and it maintains the process for the taxpayers so that they won’t feel it as a burden.

(vi) It Promotes Civic Sense

In the case of a direct tax in India, people think consciously for their rights when they pay their taxes, and every individual affirms to know that the government uses the money and how is the process of approvals and criticism take place. The civic is quite developed and makes citizens responsible for their bills and taxes. The time when citizens are responsible for their expenses and taxes, their financial situations will get better. The trust of the citizens towards the government can be a good sign because then the problems will automatically be solved without any issues.

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