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Exit Guide

Why Should We Pay Taxes to the Government?

The governments use tax money to:

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    run government schools

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    give healthcare in government hospitals

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    fund welfare schemes

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    pay wages to government employees

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    improve infrastructure like roads

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    maintain the country’s military, navy, and air force

Do you know?

  • India follows progressive taxation.
  • This means that those who earn more will pay more tax to the government.
  • The tax that a person has to pay is always proportional to their income.

Points to remember:

Points to remember:

Here are some key takeaways from this section that you should remember.

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    Tax is the amount of money that individuals and businesses mandatorily pay to the government.

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    Tax is fixed progressively on the basis of the income of the individual or business.

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    The two types of taxes are direct and indirect taxes.

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    Income tax, capital gains tax, gift tax, securities transaction tax and commodities transaction tax are types of direct taxes.

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    GST, stamp duty and customs duty are the types of indirect taxes.

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    We must pay taxes honestly because it helps the government provide basic facilities to its citizens.

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Learn more about taxes in the next sections

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