Corruption in Taxation System and Its Effects on Indian Gross Domestic Product : An Analysis Study

Abstract

Abstract: Purpose: This study aimed to examine the impact of corruption on the relationship between taxation and Gross Domestic Product. It required determining whether corruption acts as a controlling factor that interrupts the positive association between taxation and Gross Domestic Product rate. The study employed fundamental analysis methods to establish a deeper understanding of the fundamental relationships between taxation, corruption, and Gross Domestic Product. Methodology: A well-structured questionnaire was distributed to teachers, Advocate, Engineer, Businessman and others in the Haryana, Delhi, Chandigarh and Rajasthan states for this purpose. The responses of 530 people were organised in a systematic way. These responses reflect the respondents' perceptions and attitudes. These perceptions represent respondents' attitudes about the corruption in direct tax system in India Findings: The F value and the corresponding E values of all the attributes which is less than 0.05 (E >0.05), the F value (26.997) is greater than the tabular value. This indicates that there is enough evidence to reject the null hypothesis (H0), that the perception of respondents regarding reasons for high level of corruption is different he result of Chi-Square .It is clear that the significance value (p value) of Pearson Chi- Square (0.047) and Likelihood Ratio (0.045) are less than the criteria value at 5% level of significance. They are statistically significant. Hence, the null hypothesis is rejected. So it can be inferred that there is a significant relationship between occupation/types of respondent and their opinion regarding corruption is prevalent in direct tax system