Tax System

The main objectives of taxation are all about raising resources for the states or nations. Mainly the concept related taxation indicates deduction of money from an individual earning for the services the government is providing to all the individuals for their income source stability. Mainly the concept of taxation is not only related to the deduction of money from someone’s income but also asking for the charges for production, transport, and possible things that the government is paying for. Currently, the concept of E tax payment system is growing and even the Indian tax system is obtaining this process. 

Discussion 

E tax Payment System

Digitalization and modernization in every field have changed the concept of living standards. The same thing is happening even in the fundamental policies of taxation. Different organizations are providing such features to the taxpayers for an easy deduction process of money that does not require such headaches to provide the selective sum to the government. In this context, the establishment of the E tax payment system has taken place. The concept of general taxation policies comprises multiple steps so is the E tax payment system. The E tax payment system has changed the concept of giving taxes to the government and organizations with a process of implicating both direct and indirect taxes. The concept of an E tax payment system defines the submission of the chosen sum from an individual based on the products or the pay scale. The direct involvement of the taxpayer is present in this context. On the other hand, the concept related to the cringe income and the corporate areas could be defined as value-added tax policies that are engaged with the internet facility for every purchase of facility utilization.   

Indian Tax System

Taxation policy is all about engaging the individuals for provisioning some of the parts from their earnings for raising the resources for the nation for serving people and their needs. The Indian tax system and policies comprise two specific parts: direct and indirect taxation. Based on the direct taxation policy intervention the government raises funds from income tax, gift tax, capital profit tax, and so on. On the other hand, direct taxation comprises value-added tax, service tax, and customs duty tax. The Indian tax system and policies are known for its coordination that only indicates a tax deduction of 34.6% which is the current statutory tax rate in India. Mainly statutory taxation is applicable for the person who is earning about 10 crore rupees. This percentage of the taxation is considered as the world’s highest sum to be provided as tax. The most effective taxation rate in India is 28% that is applicable for most firms. Some of the market tax in India is similar to the tax peers of Mexico and Brazil. Hence, it is clearly understood that the taxation scale that is applicable in general terms is way too low in India. Moreover, the reason is not only related to the hidden income source of the citizens but also as a poor country the taxation becomes complicated and thus most of the Indians try to fall out from the taxation.  

Characteristics of a Good Tax System

5 basic elements are considered as the characteristics of good tax system are :

1. Fairness
2. Adequacy
3. Simplicity
4. Transparency
5. Administratively 

All these elements together enable the good taxation policy involvement that is ideal to imply for the citizens are considered as characteristics of a good tax system. The easy policy structure is mainly responsible for enabling the general consequences that engage the taxpayers for fair submission of tax. The variations of the conditions and establishment of the possibilities engage the principles as well. Not only these five elements but productivity is a factor as well that changes the course of the taxation policy and its involvement of government in the context of deficit finances. On the other hand, elasticity and transparency is also the crucial matter that engages the progressive taxation frameworks for sufficient resource collection. The principles related to diversity are a factor that plays a major role in raising the large revenue collection on the behalf of the government. Taxation and its process are considered as the important elements of economic growth. This specific tool is ideal to enhance the resource collection process and ideal to engage the involvement of the individuals from different sectors with the higher rate of tax collection. By enabling the appropriate system, the appropriate systems could be enabled that are ideal to establish progressive areas of economic growth.

Conclusion

The taxation system is a policy that is implicated by the government. The taxation policies comprise multiple things such as income tax, tax slabs, taxable income, tax deducted at source or TDS, and other things. Based on the foreign analysis it has been found that world-taxation policy is all about achieving the socio-economic targets and the only aspects of resource collection of a nation’s good are changing over time. The principles of the taxation policy have positive aspects and are involved in changing the rapid loss of the economy. Especially the complications like wars, pandemics, social and political issues are playing major roles in the establishement of inequalities and stability.