Republic Day - What Should Be Your Financial Duty

19 January, 2024


Republic Day - What Should Be Your Financial Duty

​​​​​​​Celebrated on 26 January every year since 1950, Republic Day commemorates the date when the Constitution of India came into effect. It is a day filled with pomp and celebration and a gentle reminder for us to be model Indian citizens to fulfil our civic duties towards our nation. Moreover, you must consider your financial duty towards your nation. So, what can you do to be a financially responsible Indian citizen? Let’s find out.

Your Financial Duty Towards India

Make sure that you do the following:

• Pay Your Income Tax on Time
  
  Most of us view tax payment as an obligation that reduces our savings and spending abilities. But we must remember that the taxes collected by the government are used towards the welfare of the citizens. Taxes help the government finance projects for better public infrastructure. Thus, your foremost financial duty is to pay your taxes on time.
  
  

• Pay for Utilities
  
  Every state has an electric, water, and telephone board. The cost of running these utilities ranges in millions. If you don’t pay your bills on time, it becomes difficult for the government to provide uninterrupted services. This traps you (the consumer), and the government (the provider) in a vicious cycle of lack of facilities due to lack of funds.
  
  

• Donate to Relief Funds
  
  Events like floods, earthquakes, and pandemics put a significant strain on the National Fund. During such events, the government uses the emergency fund to ensure citizens are not left in a destitute state. If you can afford it, you should consider donating to the PM National Relief Fund. Such donations help you fulfil your financial duty, while you also enjoy tax deduction benefits under Section 80G of the Income Tax Act, 1961.
  
  

• Invest in Make-In-India Enterprises and Government Securities
  
  You can achieve your personal financial goals and still be a financially responsible person with a patriotic outlook. One way to do this is to invest in Make-In-India companies and contribute to their growth. You can also invest in government securities like Treasury Bonds, Fixed Deposits, and other long-term investment instruments generating competitive interest rates.
  

• Consider a Financial Advisor
  
  A financial advisor specialises in the field of finances and investments and can guide you to make better financial decisions so that you can be financially responsible. They create a customised financial plan that aligns with your goals and risks. With an in-depth knowledge of the market, they consider factors that are otherwise overlooked. They also help you plan your retirement and advise on how you can reduce your tax liabilities. They monitor the performance of your investment portfolio from time to time and help you make better investment decisions.
  
  

• Repay Your Debt On Time
  
  It is important that you pay your debt on time to avoid late payment charges, interest charges and the negative impact on your credit score. Plus, such debt can potentially impact the economy on a macroscopic scale. Excessive debt may lead to reduced spending as you’d have to use your income to repay the debt. When a substantial number of individuals reduce their spending, it can impact businesses, and potentially lead to economic slowdown.
  
  

Final Note

Money plays a critical role in contributing towards a nation’s prosperity. The lack of money in the national fund can impact development and hamper growth. It impacts the government’s ability to provide the necessary infrastructure and resources. As financially responsible citizens, you can invest money in government funds, open a Bank Account, and pay taxes to ensure our country’s smooth operations. This Republic Day, take the necessary steps to be a financially responsible citizen.

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* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Investments are subject to changes in tax laws. Please contact a professional consultant for an exact calculation of your liabilities.