Tax Laws vs Other Civil Laws

The world is changing with every passing minute. So are the people, their lifestyle, aspiration, and perception of Liberties. With such rapid socio-economic changes, there is a need for continuous reforms in Laws too.

The most dynamic law in India today is the Tax law which changes as fast as the world. However, the same cannot be said for other Civil laws.

Civil Law is a broader concept, and Tax Laws also come under its purview. But Tax Laws have a totally different scope.

Taxes are the means of raising revenue to finance government spending which in turn benefits us in terms of basic necessities like food, health, education, infrastructure etc.

Other Civil laws are a means of maintaining law and order in a society so that every person functions justly. It strives to bring about a balance between individual rights and legal obligations. These laws are meant to ensure freedom to live and enjoy what’s rightfully ours.

Tax laws are meant to tax any payment derived from any personal/commercial income whereas civil laws are meant to impart punishment for torts.

However, we see that reforms in tax laws are very frequent as compared to reforms in other civil laws. Government pours undivided attention into focusing on taxing and tax rates.

Despite the number of cases pending under Civil law (~83 lakh), Civil laws are rarely amended/updated and some of them are opaque in nature.

What happens when Civil Laws do not change:

·?????As mentioned, ~83 lakh civil cases are pending in the court of law because of ancient laws which have been outworn as a result of which justice is not imparted on time due to which the quote “justice delayed is justice denied” becomes a reality for many victims.

·?????Disputes on similar issues are left pending for ages. However, there have been no amendments to speed up the process.

·?????There is also disparity as to interpretation between different courts as a result of which, no uniformity exists.

?What we think?

Even laws in dynamic scenarios tend to become obsolete with time. With modern times, where innovation is taking the lead everywhere, it seems people are capable to come up with innovative ways to deceive as well. It is necessary that with changing times, civil laws are updated to make people’s lives easier.

Data is just as important in amending/framing laws as in other fields. Tax Laws are amended on the basis of data provided by tax authorities, analysis of tax receipts, perceived tax evasions, etc.

Similarly, other civil laws should also be amended/modified/repealed based on Data analytics. Threshold-based amendments should be introduced. A policy where a certain number is considered as the threshold for cases under a particular law and when the numbers of cases cross the borderline, the law would be amended in terms of resolving the cases.

Just like with changing economic scenarios, tax laws are modified, moulded, and restructured to keep them acquainted with modern times, civil laws also need the adjustment necessary to stay up-to-date.

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Contributor: Article- Mansi Wadhwani , Image- Kunal Biswas