After independence India’s tax structure was very rigid and complicated. Tax payers faced a number of problems in paying their tax and filing their direct tax returns. The government realized this drawback and appointed committees to study the rigid tax structures. Experts like Prof. Caldor was one of the experts who studied the various complications of the country’s tax system. He recommended the introduction of Wealth tax, Expenditure tax etc to simplify and categorize the taxation policy. These were done to encourage India to pay tax and contribute in increasing government earnings. Thus, government revenues increased and more developmental and welfare measures were undertaken for the improvement of the economy of India. All these are the result of tax reforms introduced in India. With the increased liberalization of the economy tax systems have been further reformed and made more flexible and simple. This was done to make the tax system more acceptable to tax payers. By lowering the rate of tax more and more Indian employees are now paying tax. The number of Proud Indians paying tax has increased and Indian government revenue earning has increased too. This has also reduced the number of tax evaders and developed a sense of belonging among various categories of people in the country. Now most of them have realized that they are contributing to nation building as well. It has been a common belief prevailing in India now that to pay tax is an important duty of the citizens. Tax is essential for the welfare of the people. Roads, hospitals and educational institutions have all come up with the tax paid by the country men. Let's discuss Taxation policy , Need and economic impact of tax reforms in India.
Tax policy's flexibility has surely benefited Indian citizens and has also compelled them to think that the taxpaying will be good for the national growth and themselves. But are we really seeing the right use and benefits out of those taxes paid. It’s 2010 and till date we do not proper roads and their maintenance. Water is available only for few hours and electricity..... How come government keeps on asking for various taxes when they are not able to provide these basic things? For every development or non development, the burden is always on common man and that too with no substantial results.
previously the taxation was very much a burden to the indian citizens but with the recent budget some relief can be sought as the limit for taxation has been extended a little. but still there is lot of inflation plus the heavy number of taxes is making living miserable.
well the recent taxation policy has reduced a little burden on common man but i dont think it is adequate.. according to the calculations, a middle class man would be saving only around 171 rs per month with the recent taxation policy which is not even sufficient to have one time food with a family. government must realise real time strategies unlike doing it for the sake of just doing it
I do not know much about the tax policies in india but i am aware about that the people who's income is more than 50 thousand then the person has to pay the tax in order to maintain the balance between the government revenue and save himself from the burden of sudden tax or income tax raid.
Our Government finance its all day-today activities and expenditure through the tax which it receive from us, so there is need to strengthen the tax structure. Implementation of the proposed goods and services tax will be welcome a measure of government as it would remove all cascading effect of taxes and give relief to the people.
I guess tax policies are not that efficient as it should be. People hardly pay tax to the government that comes to them from the customers. Tax policies should be enhanced to great extent in order to keep the economy high and whatever the money comes should be used for the benefits of people.
in my view if the government utilizes the tax money completely for the benefit of the people and to give a boost to Indian economy, there would be no need to revise the taxation policy and increase the taxes. Instead the burden could be lowered on the people's shoulders if taxes are utilized optimally.
Huge loss to the nation caused by several scams to the economy of india. the tax policies are indeed are not in a good condition. The average man under the burden of inflation due to more scams has to pay higher income tax to compensate the loss.
Taxation in India is pretty high if we compare the development brought about by the government using this money. Large amounts of tax money goes into the pockets of politicians which is the reason why nothing develops but people continue to pay money in the form of taxes. Government must set up a body to keep a watch on the money collected from taxes and see that it gets utilized in a proper way.
