Journal of Commerce and Management Thought

Double taxation occurs when an individual is required to pay taxes more than once for the same income, asset, or financial transaction. Double taxation in India frustrates the goal of tax neutrality, so double taxation is a tax policy problem that is worthy of remediation. Limiting double taxation in this context also seeks to maintain the overarching tax policy goal of tax neutrality, specifically location neutrality and finally, combating multiple taxation helps promote an efficient tax system. And also it is not justified in a country like India to tax the people, falling in the middle and lower income category, more than once. The paper attempts to find a solution to the menace of double taxation in India. It has been discussed that whether the government should continue with both direct and indirect taxes which are a major cause of this problem or should the government find a middle way by adjusting some of the components of direct and indirect taxes so that the burden could be eased off the tax payers. The study is aimed at finding a solution to the problem of double taxation. In this study a case for progressive GST (Goods and Services Tax) has been made

In the first section we will discuss the various interpretations given for Double taxation by experts. We then make a empirical case for how double taxation impacts the middle and lower income groups. As the various taxes levied generate revenue to the Centre as well as States an emphasis has been laid for more simple tax structure while keeping the revenue of the Government in good shape while doing away with the problem of double taxation.