Associate Professor, Commerce & Management, Career College & Visiting faculty, Career institute of international management Barkatullah University, Bhopal, M.P.
Online published on 12 January, 2015.
Tax system, the world over has undergone significant changes during the last twenty years, as many countries across the ideological spectrum and with varying level of development have undertaken reforms. Income tax is a very important direct tax. It is an important and most significant source of revenue of the government. The government needs money to maintain law and order in the country; safeguard the security of the country from foreign powers and promote the welfare of the people. Since our government is wedded to socialistic pattern of society it is the foremost duty of the government to bring out such welfare and development programmes which will bridge the gap between the rich and the poor. All this requires mobilization of funds from various sources. These sources may be direct or indirect. Income tax, being a direct tax, is an important tool to achieve balanced socio-economic growth by providing concessions and incentives in income tax for various developmental purposes. This paper undertakes the analysis of the Indian tax system. It details the evolution of the tax system and its reform over the years and analyses its efficiency and equity implications. The study proposes to analyze new dimensions to India's taxation policy in the changing scenario of taxation in India.
Tax System and Policy, Development
