Tax norms – Income tax is the source of fund. The central government imposes and utilizes income tax. The aim was to fund the various activities as well as for serving the common public. It is nothing less than mandatory to pay the Income tax by individuals, HUF, organization, firms and so on, which fall in the category of norms as established by the Income Tax Department of India. It is important to understand here that the levy of tax is separate and is dependent on a number of criteria. This levy is taken care by the Indian Income Tax Act, 1961. CBDT is the Central Board of Direct Taxes, which governs the Indian Income Tax Department. It will be appropriate to add in here that it is the Income-tax Department, which is the biggest revenue mobilizer for the Government.
In order to simplify the procedure for the general public, they have made laws and norms really clear and simple. Then there has been fabricating of online procedure of filing the Income-tax online so as to ease out the cumbersome procedure. There is an online website, which is the official website of the Income-tax department. And, then there are the really crisp and well-tabulated criteria with respect to charge in the income tax, residential status affecting the income tax, the scope of the income as well as the heads of the income. These have been so formulated that the simple individual does not make any mistake in the filing of the income tax returns.
In the current scenario, it is the foreign investors and the simple taxpayer who isn’t paying the tax well. In fact, the aim of the Income-tax Department is to simplify the laws further. And then there shall be a better accumulation of tax. It is a part of this reason that the ‘much talked about’ Goods and Service tax bill remains muted. The reason was due to political pressure. There has been definitely a need of taking care of the black money, in the country and outside of it.
The Government has taken continuous steps so as to meet the target of tax collection. However, the present picture shows the road to be full of bumps and speed breakers. Lots of tax norms have been introduced. In fact, they also raised excise duty on petrol and diesel so as to take care of the tax collection. While there are many who feel, the need of achieving the target by the big companies paying extra advance tax. The Government feels that this will not be the best solution to the problem.
So, a better way out rests on the simplification of the rules and norms. This will make the process of filing the Income tax laws and returns hassle-free and easier.