Does the Government pay tax on its own income through tax collection?

@thebigk • Oct 21, 2024

Oct 21, 2024

1.4K

My belief is that all the monetary system is a big fraud and I'm wondering if the governments pay taxes on their own income through collection of tax from people? I believe the answer is no, but need confirmation on this. What do you think?

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ISHAN TOPRE

@ishan-nohePN • Dec 6, 2013

Government agencies need to file tax and they do pay their taxes on time.
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Kaustubh Katdare

@thebigk • Dec 6, 2013

Issue
Government agencies need to file tax and they do pay their taxes on time.
Who does the government pay taxes to? Self?
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ISHAN TOPRE

@ishan-nohePN • Dec 7, 2013

Kaustubh Katdare
Who does the government pay taxes to? Self?
I thought you would ask this question. The answer is yes.

There are two types of departments.
1. Public service.
2. Profit earning.

Public service department means departments like police, home ministry, foreign ministry etc. They do not file income tax as they do not have any income/ profit.

While departments (meaning) PSUs (or any income earning) owned by government have to file their returns as per IT laws.

The money goes to 'central treasury' the same place where your and my money goes.

Remember that any person/ Government/ Govt. department has to pay tax on any income which goes to Central treasury. Audit is done for everyone.

For further info, you may want to know about CAG (comptroller and auditor general)
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