We are what we repeatedly do. Excellence, then, is not an act, but a habit—Aristotle

Globalisation has increased the importance of English like never before. So these days’ parents introduce their children to English right from the day they start going to a playgroup. They choose English as the language of instructions for their children. You must be interacting with your children in English more often than your parents did with you when you were a kid. Today, fluency over this global language is a must if you want to stand out. But you are also aware that, learning a language and achieving a mastery over it is not child’s play. It takes you years before you can claim that you know a language well. This approach pays off eventually, as the child too understands the importance of learning English. When children start interacting among themselves, they use English regularly, and one day they become fluent in writing, reading and speaking it. English becomes their habit. However, what holds the key is how well they are taught.

However, this approach to groom your children to be competent isn't enough to make them good human beings and responsible citizens. If you have higher aspirations and bigger goals, they need to inculcate healthy habits. And let’s not forget, more than what you teach them, children learn from what they observe and how well they comprehend and interpret what they learn. If you continue to smoke before them, they will start finding smoking less injurious to health even if you tell them smoking is bad, and they shouldn’t smoke when they grow up. Similarly, if you keep talking about why you have no option but to bribe the tax officials or appoint tax consultant that come with high price tags, your children would find it ‘perfectly fine’ to evade taxes.

As reported by Mint dated June 17, 2016, only 5.4 crore Indians pay taxes and file returns. In the Financial Year (FY) 2015-16, the contribution of direct taxes to the total tax collection fell to the lowest level in last 8 fiscals. As reported by The Hindu dated May 02, 2016, direct taxes accounted for a mere 51% of total revenue collection of the Government. All these are alarming statistical indicators. They expose the growing tendency of people to evade income tax. When you consider the number of cars running on roads and real estate boom India witnessed until recent years, it becomes apparent that tax evasion is widespread, common, and perfectly acceptable to people of India.

As a result, over the years, indirect taxes have kept crawling higher. Indirect taxes such as sales tax, service tax are regressive because they treat rich and poor at par. As a result, the poor end up paying higher taxes as a proportion of their income as compared to those paid by the wealthy. Identifying this problem, the PM advised taxmen to double the tax base without harassing existing and potential tax payers.

What is the remedy?
Central Board of Direct Taxes (CBDT) has been planning to meet students across all age groups and social strata to make them aware of the importance paying income tax regularly. The tax department wants to instil the good habit of paying taxes in children as well.

What is the approach of CBDT to achieve this?
The CBDT is planning to visit not only Government schools but also the private schools once in 3 months. Young tax officials will meet school-going children in a batch of 20-25 to help them recognise the importance of not evading taxes and explaining to them how this approach would help the Government speed up the progressive programmes which have slowed for the want of funds. Moreover, it would also assist the nation in improving the balance sheet and rationalise the direct tax structure.

PersonalFN is of the view that such proactive approach of the CBDT is a welcome move; however, the Government must ensure that corruption in the income tax department is curtailed. If the data on real estate and automobile ownerships is not very convincing,considering the narrow base of the tax paying population, the role of corruption in tax departments is too prominent to ignore. While it’s a duty of every Indian to pay taxes on time, the Government must ensure that corruption doesn’t provide any easy way out to tax evaders. Isn’t the Government planning to meet CBDT on a quarterly basis to convince the department to take severe action against corrupt officials?

Just as a father who smokes 10 cigarettes a day can make little impact on his child, if he tries convincing his child to keep away from cigarettes for good, the same is the case with paying the tax department. Today, the image of income tax department among masses is this—a corrupt Government department. Unless the administration changes this perception, neither students nor their parents are likely to take tax officials seriously. Giving up corruption is not child’s play and as the Aristotle says, "We are what we repeatedly do.” So for children to take inspiration from the tax department, a few in the department will have to stop doing things they have been doing all these years.

PersonalFN always encourages its readers and investors to pay taxes on time and file tax returns before the due date.
 

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