Income tax is a very important element for growth and betterment of the Indian Economy. By paying taxes on a regular basis, an individual becomes directly responsible for the growth of his country. The amount collected by the government as tax is used for the infrastructure development and other such uses as sought important by the government for the betterment of the nation. Hence, it’s the duty of each and every individual to pay legal taxes regularly.
However, keeping the various income strata of the Indian society, The GOI has levied certain rules and tax laws in order to make sure that the people belonging to the lower income groups are saved from the burden of paying taxes, while people lying in the middle or higher income groups are taxed as per their Income status. The tax rules are set in order to make sure that the economy runs in a balanced manner.
The rules as set by the GOI keeps in mind the income of an individual along with his saving requirements. Tax exemptions act as a savior to those who can’t afford to pay taxes or those who wish to save a little extra for the betterment of their family.