The principle of tax that stipulates that the time, mode and amount to be paid should be clear to the tax payer is Question 10Answer

The principle of tax that you are referring to is known as the certainty principle of taxation. This principle mandates that tax laws should be clear, definite, and understandable to taxpayers. Specifically, it underscores three key aspects:

1. Time: The taxpayer should know when the tax payment is due, allowing for proper financial planning and adherence to deadlines.

2. Mode: It clearly defines the method of payment, whether it be through direct payment, bank transfer, or other means.

3. Amount: Taxpayers must understand how much tax will be owed, which involves transparency in tax calculations and rates.

Having this clarity helps in fostering trust between the government and taxpayers, reduces confusion, and promotes compliance with tax obligations. Overall, the certainty principle is integral in creating a fair and efficient tax system, where taxpayers can make informed financial decisions without fear of hidden charges or unexpected liabilities.