Features of Indian tax system

  • Multiplicity of Taxes/ tax bases:- During the five year plan taxation has been used in India as one of the main instrument to raise revenue and to achieve the various socio economic objective. new taxes have been imposed and tax rate have been increased to mobilize a large part of the income created as a result of economic tax structure in India has been drawn in such a manner that all relevant ability indices are taxed.
  • tax structure:- as already stated year after year we have been imposing new tax and raising the rate of existing taxes consequently our tax structure has become very complicated as compared to this our population is very illiterate people cannot understand this complicated tax structure
  • Inequitable tax structure :-Although we import large number of Taxes yet our tax structure lacks equity according to Raja j Chelliah out tax system does not have the horizontal equity or vertical equity
  • Imbalance between direct and indirect Taxs :- the main reason for the inequitable tax structure is the preponderance of indirect tax the document on long term fiscal policy show that the proportion of increased to as high as 82% in the mid sixties consequently the ratio of direct tax has declined to 18%
  • revenue surplus or deficit :-another noteworthy feature of Indian tax system has been axis of its collection compared with requirement till mid seventies  to be specific we have been having surplus on Revenue account and be surplus for partly used to finance capital structure it is only on capital account that our budget deficits
  • progressive tax:- in our country higher tax surcharge on income in our country progressive tax is imposed on direct and indirect tax
Posted on by
Score
Views