Tax is defined as a compulsory contribution levied on a person’s property or business to support
the government for economic and social work. In other words, it is money paid to government to
fund its program and services. Many people do not like the idea of paying tax. They hope that
they could keep all their earning to themselves. Without tax government contribution to the
health sector would be impossible. Taxes go to funding health services such as social health
care, medical research, social security etc. Money from taxes is channeled to funding, furnishing
and maintaining the public educational system. Income tax, GST, Customs duty, Exercise duty,
Road tax, Property tax etc are some common taxes paid in India.Those earning between Rs.
2.5 Lakhs and 5 Lakhs are subject to 5 per cent tax; those earning between 5 Lakhs and 10
lakhs rupees, 20 percent tax; and those above 10 lakhs, a 30 percent rate. Further you are not
required to any Income-tax if your total income doesn’t exceed Rs. 5,00,000. There are stringent
regulation for tax evasion. The punishment could range from monetary fines to jail imprisonment
based on the evaded amount.
Student Author: Vinay Singh Digari
Class 8th B
