An Analysis of Trends and Patterns of Income Tax in India
Journal Title: VISION: Journal of Indian Taxation - Year 2017, Vol 4, Issue 1
Abstract
Taxes always occupy an important and strategic place in the development of an economy specially the developing or emerging economies. The present paper analyses patterns and trends in income tax of India. The data shows that the overall tax burden in the financial year 2004-05 was 28.67% which means that only 71.33% was available to people for consumption. However, the total tax burden in the financial year 2015-16 dropped to 18.67% and the income available for consumption was 81.33%. The trend analysis of growth rate in the first slab shows increasing trend from financial year 2004-05 to financial year 2010-11 i.e., to the level of 3300%. Thereafter, it went on decreasing from 3300% to 3100% to the lower level of 2900% in the financial year 2015-16. The second tax slab for 20% is showing an upward trend. The third tax slab for 30% has seen a declining growth rate from the level of 7.4% to 62.96%. Therefore we can interpret that the government intends to reduce the tax liability of tax payer and thus improve the standard of living of tax payers by allowing them more disposable income.
Authors and Affiliations
Amit Kumar Singh, Rohit Kumar Shrivastav, Lovleen Gupta
Keywords
Related Articles
- EP ID EP623231
- DOI 10.17492/vision.v4i01.9992
- Views 321
- Downloads 0
Related Party Transactions in India: Are they influenced by New Regulatory Framework?
The unabating scandals and financial irregularities across the world seem to underline the related party transactions (RPTs) as one of the means corporates attempt to ‘manage’ earnings and divert resources as well. Misus...
Goods and Services Tax (GST): A Comparative Study of Select ASEAN Countries
After a decade long struggle, overcoming all the issues acting as roadblocks in its implementation, Goods and Services Tax (GST) has finally been implemented in federal India from 1July 2017. By subsuming majority of ind...
State-Local Financial Relations in India
In a federal economy like India, it is important to understand the fiscal relations between different layers of government to bring out their implications for revenue generation, revenue sharing and taxation. This paper...
Strengthening Financial and Taxation Regulatory Framework in India: A Review of Recent Legislations
A number of legislations and institutional measures have been implemented in recent times by the government of India to ensure an efficient financial and taxation system. These measures focus on developing an unambiguous...
Customs Duties: Revenue Significance and Legislative Framework
Customs duties constitute a significant source of revenue for the Central government although its importance has declined over a period of time due to the liberalisation of the economy and the policy of progressively red...