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Why we pay tax on income....?

S ELAVARASI (ACCOUNTANT) (2975 Points)

23 September 2017

Dear Experts / Friends.,

Please give the definitions....

Why we pay Tax on our Income...?

It's our own. Then why...?

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20 Replies

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 23 September 2017

Respected Experts.,

One more question.....

Please give me the solution for my ITR for the AY 2016-17 & 2017-18...

I file my ITR for the AY 2016-17 of Presumptive scheme (ITR 4S) at the I'm not employed anywhere.

But, In AY 2017-18 Im employed and doing business like Sale of Plastic Bottles. TDS deducted my Employment.

Now, My questions are,

Can I file my ITR AY 2017-18 to Presumptive scheme like ITR 4 (AY 2017-18) Please give me your valuable reply...

I'm not file my return till date....

Thanks in Advance

Please reply

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 23 September 2017

"Can I file my ITR AY 2017-18 to Presumptive scheme like ITR 4 (AY 2017-18) Please give me your valuable reply..."

YES.

Who can use this Return Form 4 (AY 2017-18)
This Return Form is to be used by an individual/ HUF/ Partnership Firm whose total income
for the assessment year 2017-18 includes:-
(a) Business income where such income is computed in accordance with special provisions
referred to in sections 44AD and 44AE of the Act for computation of business income; or
(b) Income from Profession where such income is computed in accordance with special
provisions referred to in sections 44ADA; or
(c) Salary/ Pension; or
(d) Income from One House Property (excluding cases where loss is brought forward from
previous years); or
(e) Income from Other Sources (excluding Winning from Lottery and Income from Race Horses).

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S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 23 September 2017

Thank you for the reply Mr..... Sir.,

Please reply My first question and Reasonable...!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 23 September 2017

Government, as per our constitution, plans for general welfare schemes of the citizen as whole and basic infrastructure - developments of the country. For which it require funds........ which it collects either by DT or IDT (in short).........

So, the rule is citizen who earns more is taxed a bit more over its earnings by DT.

And the person who expends more pays more under IDT.........

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S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 23 September 2017

Dear Sir.,

Why the seiling limit...?

Bcoz, A family get 4 or 5 members. Earning person is one person. Then How to the Govt fix the ceiling limit. Without considering the family...?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 23 September 2017

The whole process of taxation is very complex. It is arrived at overall per capita income, average family size, average standard of living and the expenditure outlays of the Government. (better explained in Economics)

So, based on average annual expenditure of family the ceiling/ threshold limit is fixed, which is constantly reviewed every year based on inflation rate.

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 23 September 2017

Originally posted by : Dhirajlal Rambhia
	The whole process of taxation is very complex. It is arrived at overall per capita income, average family size, average standard of living and the expenditure outlays of the Government. (better explained in Economics) So, based on average annual expenditure of family the ceiling/ threshold limit is fixed, which is constantly reviewed every year based on inflation rate.

Dear Sir.,

Thank you for your Explanation. Also give a thank for spend your time...

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S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 23 September 2017

Thank you sir...

One more question please...

How many years can I file my ITR U/s 44AD as Presumptive Scheme...?

Any limit or Conditions apply..?

anshul aggarwal (Consultant) (1074 Points)
Replied 23 September 2017

Mr. S Elavarasi

I would like to answer your first question "Why we pay income tax"

It brings social equality in society. Taking more taxes from person who is earning more and distributing as welfare schemes and subsidy to earning less.

anshul aggarwal (Consultant) (1074 Points)
Replied 23 September 2017

If this is not done then it will create a situation of civil war what you are in african countries. poor will start snatching from rich.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 23 September 2017

"How many years can I file my ITR U/s 44AD as Presumptive Scheme...? Any limit or Conditions apply..?"

No conditions for continuously declaring profits u/s. 44AD...........

But there is condition, if an assessee doesn't declare it for any one year (before completing five years)

For example:

An eligible assessee claims to be taxed on presumptive basis under section 44AD for Assessment Year 2017-18 and offers income of Rs. 8 lakh on the turnover of Rs. 1 crore

For Assessment Year 2018-19 and Assessment Year 2019-20 also he offers income in accordance with the provisions of section 44AD.

However, for Assessment Year 2020-21, he offers income of Rs.4 lakh on turnover of Rs. 1 crore. In this case since he has not offered income in accordance with the provisions of section 44AD for five consecutive assessment years, after Assessment Year 2017-18, he will not be eligible to claim the benefit of section 44AD for next five assessment years i.e. from Assessment Year 2021-22 to 2025-26.

Many of our clients prefer and have been declaring their gains u/s. 44AD for last 9 years (for civil construction from the implementation of the section). The same was extended to retailers from AY 2011-12.

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