Vol. 5 (02) pp. 1700-1714 DOI: 10.21474/IJAR01/3333

A WIDENED TAX BASE - REMEDY FOR ECONOMIC DEVELOPMENT AND DISTRIBUTIONAL EQUITY IN INDIA : AN ANALYSIS.

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  • Practising Chartered Accountant.
  • Associate Professor PG Department of Commerce, Utkal University.
  • Research Fellow, PG Department of Commerce, Utkal University.
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Abstract

Personal income tax base in India is very low as compared to other emerging and developed nations. During the year 2010-11 the total returned filed was about 3.3% of the total population of India whereas the ratio of returned filed by Singapore was 39%, USA 46%, and New Zealand 75%. Taxation serves the purpose of promoting economic development by curbing consumption, increasing the incentive to save and invest and transferring resources from the hand of the public to the government for investment and public finance purposes. Initiative on widening of Tax base should be honest and vigorous one so that the entire potential tax payers comes under its purview which in turn shall contribute to national tax revenue. So, there is a need for creating transparent, friendlier and less discriminatory administrative system. In light of the above the relationship and trend among personal income tax, corporate Tax , indirect and GDP are analysed and it is suggested for Expansion of Scope for Presumptive Taxation, Discourage Cash Economy/ Encourage Cashless economy, Tax on Agriculture Income, Imposition of more Tax on High Net Worth Individuals, Imposition of Property Tax, Gradual Reduction/Withdrawal of Various Subsidies And Exemptions and Expanding the Tax Base.

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How to Cite This Article

CA Gopal Prasad Agrawal, Anil Kumar Swain and Aswini Kumar Bhuyan. (2017); A WIDENED TAX BASE - REMEDY FOR ECONOMIC DEVELOPMENT AND DISTRIBUTIONAL EQUITY IN INDIA : AN ANALYSIS., Int. J. of Adv. Res., 5 (02), 1700-1714, ISSN 2320-5407. DOI: https://doi.org/10.21474/IJAR01/3333

Corresponding Author

Gopal Prasad Agrawal
Chartered Accountant, C-2/4 Chandrama Complex, Unit-3, Kharvel Nagar, Bhubaneswar- 751001
Creative Commons Attribution 4.0 This work is licensed under a Creative Commons Attribution 4.0 International License.