Tax exempt form

Introduction

Tax is a source of income of federal government . It is a means through which the federal government fulfills its expenditure . The expenditures are mostly made on the following.

  • Defense and security of the country.

  • Social welfare of the citizen.

  • Economic prosperity of the people.

  • Increasing the industrial and agricultural output.

  • Aid the people by giving them concessions or expenses arising out of the natural calamities. And many more.

    • The above stated reasons for collecting taxes are just a few out of the many of the reason that needs finance. And that finance need is fulfilled by taking taxes from the citizens.

    Meaning of Tax exemption.

    Tax exemption means giving rebate, concession, or even reimbursement of the some of the tax paid amount. Thus tax exemption is a method used by the government to facilitate and aid its citizens financially. The financial aid in the form of tax exemption can be given to the people or organizations in the following cases only.

  • Social welfare institution or society working for the welfare of the common people.

  • Aid to the people suffering from a natural calamity like drought, flood, hurricane etc.

  • Helping financially the industry of the country to stand and do well and meet the foreign competition.

  • Aiding the new industry, factory or company to start its operation well and make expansion easily without having any tension of tax payment.

  • Giving subsidy to the farmers, so to increase their production of seeds and other agricultural outputs, along with that decreasing their output costs.

    • Recent tax exemptions for the common people .

    During the latest problem of natural calamity of hurricane namely Katrina, the tax exemption bonds were issued for the people who were directly or indirectly effected by the problem. People who lost their house shed, vehicles or any other losses due to hurricane Katrina are the one who were issued the Tax exempt bond. Every year the federal government spends millions on distributing funds for welfare projects. By welfare projects we mean the following motive of the project.

  • People of the country directly or indirectly get the benefit of the welfare either in monetary or non monetary terms.

  • Food, shelter, clothing, job etc needs of the people should be fulfilled completely.

  • Spreading of education in all the ages of the people.

  • Increasing employment and decreasing crimes.

  • Facilitating the poor and the needy and giving financial and medical aid to these people.

    • Thus the main motive can be figured out as to work for the improvement of the standard of living of the people and fulfilling their financial and medical needs.

    To get the tax exemptions these institutions has to fill a tax exemption form. A tax exemption form consists of the information that a person, institution etc has to fill so as to prove their feasibility for getting tax exemption. Only those people or institutions gets tax exemption acceptance whose cases are genuine and with true facts and figures filled in the tax exemption form. The tax exempt forms are available at all government treasury offices . You may even download a form from the above stated site .

    Pre –requisites for the tax exempt form .

    Tax exempt form should consist of the true facts about the person applying for the tax exemption. In case of any lie or faulty facts or figure filled in the form, a proper legal action is taken against that person. A fine or even an imprisonment can be charged on the deliberate attempt of such person . The pre requisites for getting tax exemptions are as follows .

  • It is required to keep whole year business transaction copy, along with that the reason for why you should get tax exemption. This is done so that the authorities may decide easily that the said person eserves to be given tax exemption or not.

  • The cross reference of the information provided in some cases in needed .

  • The facts and figures filled should be true and fair .

  • The copy of the records being sent to the government agency must be kept with you in a safe manner so that the agency may ask for it again whenever it wants to.

    • Tax exemption form.

    The tax exemption form consist of the details that a person is required to give to the treasury. It includes the followings,

  • Name of the person.

  • Address of the person.

  • Job/Business of the person.

  • Yearly income.

  • Reason of loss.

  • Total loss.

    • A few more things that may felt necessary as according to the case or the requirements can be asked by the authorities. It must be noted here strictly that the Name, address and all other information should be submitted which are most near the truth or you may say nothing but the truth. In case of some faulty information a person may have bear serious consequences which may be fine, jail, fine and jail both etc.

    Conclusion.

    The tax exempt form is not meant for every citizen of the country. The main motive behind tax exempt form is to help or aid the new enterprise or save the old enterprise through a financial support. The other motive can be to give monetary support to the sufferers . Therefore every one should not think that he/she should get the tax exempt just for nothing . Only those people are meant or given tax exemptions that really need them. The tax exemption for them is the revival of their lives and jobs or business . And without these revivals the chances of living of such people with respect declines. Therefore the sufferers or the needy are the one who can and should apply for tax exemptions. Other should pay their full tax and help their country and countrymen to make their own space under the sun .

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