Associate Professor in, Department of Commerce in Railway, Degree College, Secunderabad, Telangana, Email: drsopankasinath@rediffmail.com
Online published on 10 October, 2016.
The Union Finance Minister of India Sri Arun Jaitely presented the Union Budget in Parliament in 2016. The fiscal policy encompasses the Direct and Indirect Taxes. The Finance bill approved by President of India will become Finance Act. The Taxpayers are the elite group. Their contribution to the Economic growth and development of Indian Economy is highly commendable and appreciable. The present paper proposes the study of Income tax in India from both theoretical and practical aspects. The Income Tax Act, 1961 came into effect from 1st of April, 1962 in India. Taxation comprises of Direct and Indirect Taxes in India. The Total (Direct and Indirect) Taxes in India have gone up to Rs 14.54 Lakh Crore during the year 2015–16 in contrast to 627 crores during the year 1950–51. The Income from Total Taxes has increased substantially by 2, 319.26 fold during the above study period. The contribution of total taxes is highly substantial in India. Direct tax to GDP ratio in India is at 5.47 percent in the year 2015–16 in contrast to 2.22 percent during the year 1950–51. The direct tax to GDP ratio has gone up substantially during the above study period. In the end there are few suggestions made to the Government in the interest of taxpayers.
Income tax, Capital Gains, Total Income, Gross Total Income, CBEC, CBDT, Deductions, Exemptions
