I am writing articles regarding taxes. I don’t preach others that it is bad to pay taxes or advice them not to pay taxes. I believe that Taxes have to be paid by the citizens for the welfare of the nation.
The only thing I want to emphasize is that, why does government gives tax break? It should serve some purpose right? I am certain that most of the rules does make sense even today which was formed way back before my birth. 🙂
All that I would like to bring to your notice is that, if government gives the tax break, use it. For instance: Why does government give tax break on house loans and not on personal loans? (These are my thoughts and I don’t have authentic information regarding the same as to why the rule is like that.) As you are aware that Land is owned by the government and it is leased out to an individual even if he/she owns it. Government has the final authority regarding the land that one possess. If you want to argue with me that I am wrong, then why do you pay taxes for your own land ?
Why government does give tax break for house loans? Government wants you to have a piece of land so that it can get revenue in the form of taxes and it wants you to build a house because you are not having enough liquidity to spend after paying the loan and most of the money gets back to the government in one way or the other. Generally government prefers to give tax break when it knows that there is no liquidity for considerable amount of time. More on that later.
Government provides tax breaks and it wants you to behave financially in a certain way and it makes sure that you do it that way only. All that I want to tell you, it is not necessary to do it that way. You can avoid certain things that government wants you to do and financially plan certain things in a better way. It is necessary for you to make the decisions for your financial well being.
PAY TAXES. DON’T EVADE TAXES. IF EVERYONE STARTS EVADING THEN GOVERNMENT WILL NOT BE IN GOOD SHAPE AND ECONOMY WILL NOT BE GROWING.
Engineer's Finance 