Introduction

Let’s face it: taxes in India are a nightmare for the common man. From the complexities of filing returns to the endless paperwork, it often feels like the system is designed to confuse and frustrate. Every year, we’re bombarded with new rules, deadlines, and technicalities that make us feel lost in a maze with no way out. But the real question is—why has it become so difficult for ordinary citizens to comply with the tax system?

The Overwhelming Complexity

The tax system in India is far from simple. It’s like navigating through a labyrinth of rules, forms, and policies that are not only hard to understand but also constantly changing. One minute, you think you’ve got it all figured out; the next, the government rolls out a new regulation or updates the tax slab.

Take GST for example. It was introduced to simplify things, but it has only made matters more complicated. People now have to deal with multiple tax brackets, state-specific rules, and online filing portals that crash all the time. How is the average citizen supposed to keep track of all this?

GST: A Boon or a Bane?

Remember when GST was launched with great promises of simplification? Fast forward to today, and it’s still a mess. Small business owners, in particular, are hit hard by the constant updates, compliance burdens, and fines for missing deadlines. What’s worse is the back-and-forth with the GST portal that doesn’t even seem to work half the time.

The idea was to bring everything under one umbrella, but the truth is, it just left people drowning in more paperwork and technical glitches. The Input Tax Credit (ITC), which was supposed to help businesses claim credit for taxes paid on inputs, has become a headache. The government imposes strict conditions and frequent updates on who is eligible, making it even harder to navigate.

Income Tax Filing: The Annual Nightmare

For most taxpayers, income tax filing has evolved into an annual nightmare. It’s already bad enough that we have to pay taxes, but then we also need to file returns, with seemingly endless forms and details. One misstep, and you’re hit with penalties. Worse, you have the constant fear of being audited, even when you’re following every rule in the book.

The online filing system, meant to simplify the process, is riddled with errors, delays, and a confusing interface. You end up spending hours trying to figure out how to submit your return properly, only to be left frustrated.

Tax Deducted at Source (TDS) is another confusing concept. It’s deducted by employers or other parties before your income even reaches you, leaving you with little control over how much you actually get to keep. But the real kicker comes when you try to get the deducted tax refunded through your Income Tax Return (ITR) filing. The process is slow, and the forms are so complex that it often feels like all the work is being done for the government’s benefit.

Tax Burden: Are We Paying for Progress?

Let’s talk about the tax burden. Taxes in India are increasing, but are we really seeing the benefits? For the average person, it often feels like taxes are just another way for the government to extract money without giving back. Despite all the tax deductions and rebates available on paper, many find that the actual benefits don’t make much of a difference.

Consider Section 80C. Under this section, deductions are allowed for investments in PPF, ELSS, and certain forms of insurance. While it sounds good in theory, the ₹1.5 lakh cap isn’t much when you’re trying to plan for the future. Then there’s Section 80D for health insurance and Section 24 for home loan interest. But with rising costs of living, how many people actually have the bandwidth to take full advantage of these deductions?

When it comes to public services like roads, healthcare, or education, the common man often sees little improvement. It’s hard to believe that our taxes are being put to good use when the benefits seem so distant.

Corporate Tax Cuts: The Government's Dilemma

The government has consistently favored large corporations with tax breaks, hoping that the boost in investment would benefit the economy. But how does this help the common citizen? Corporate tax relief often means that the burden falls even heavier on the regular taxpayer.

Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) may sound complicated, but these are often adjusted to benefit large corporations. This leaves the smaller taxpayer to shoulder a larger share of the tax burden. There seems to be an inherent flaw in the tax system that favors the rich and leaves the rest of us struggling.

The Tax Barriers for Businesses

For small businesses and entrepreneurs, tax compliance is a never-ending nightmare. In addition to GST, there are other complexities like Advance Tax, where businesses must pay taxes in installments based on projected income. If payments aren’t made on time, hefty penalties and interest are imposed.

Small businesses often find themselves caught in the crossfire of changing tax rules, and the government’s focus on Tax Evasion and Black Money only adds to the stress. Tax audits are a constant threat, and in many cases, small businesses end up paying more in penalties than in actual taxes.

Securities and Exchange Board of India (SEBI): An Investor's Savior, But at What Cost?

Although this article focuses on taxes, it’s impossible to overlook the role that SEBI plays in India’s financial ecosystem, especially for investors. SEBI, or the Securities and Exchange Board of India, is supposed to protect investors and regulate the securities market.

On paper, SEBI is meant to shield small investors from market manipulation and fraud. However, for the average investor, SEBI’s regulations can be just as frustrating as the tax system. The constant changes in rules, complex disclosure requirements, and lack of timely action on fraudulent schemes often leave investors feeling helpless.

While the idea of a safer, more transparent market is great, for many, it feels like a battle between regulations and the real challenges of navigating the stock market.

Key Officials in India's Ministry of Finance and SEBI

Ministry of Finance:

• Nirmala Sitharaman: Serving as India’s Finance Minister since 2019, Nirmala Sitharaman has played a pivotal role in shaping the country’s economic policies.

• T.V. Somanathan: The Finance Secretary, T.V. Somanathan is responsible for overseeing the ministry’s administration.

• Pankaj Chaudhary: As the Minister of State for Finance, Pankaj Chaudhary contributes to managing finances and formulating policies within the ministry.

Securities and Exchange Board of India (SEBI):

• Ajay Tyagi: The Chairman of SEBI, Ajay Tyagi has been working to ensure the integrity of India’s securities markets while safeguarding investors. Under his leadership, SEBI has implemented several reforms to regulate market activities.

Conclusion: A Cry for Reform

At the heart of this frustration lies one simple demand: fairness. The tax system in India seems designed for those who already have the resources to navigate it—corporations, wealthy individuals, and tax professionals. The common man, meanwhile, is left to navigate a system that seems more about generating revenue than serving the public.

What we need is a tax system that is simpler, more transparent, and more responsive to the needs of the people. Until then, the average taxpayer will continue to bear the brunt of a system that leaves them feeling trapped in a never-ending cycle of confusion, fines, and red tape.