Indian Tax System Research Articles

An Investigation Into To The Use Of Artificial Intelligence In The Indian Tax System

Indian taxation is main source of public finance in developing economy. The Indian tax system has long been plagued by issues including tax evasion and ineffective administration. Tax administration systems must constantly be designed to reduce errors and speed up decision-making. The Indian tax system is beset by a shortage of workers to do labor-intensive duties including data input, return inspection, tax audits, etc. The Indian government recently announced the use of artificial intelligence and machine learning in the tax assessment system in order to handle the evolving tax landscape in conjunction with the use of analytics. In the field of taxes, artificial intelligence, or AI, is a relatively recent development.

GST: Its Types and Advantages

GST is widely regarded as the most significant reform to the Indian tax system. Due to political issues and the conflicting interests of various stakeholders, it was not implemented by the ruling party in 2010, a highly likely reason that was rejected by the majority of parliament members. It was a comprehensive system that not only subsumed all indirect taxes of the central and state governments but also unified the economy. This paper presents an overview of the GST concept, its importance, and its merits for the economy.

Indian Tax System: Compliance by Design


 Taxes matter. They are required to finance social goods which the markets fail to provide. Since taxes are compulsory payments, it is important to evolve the design and implementation features to ensure effective compliance with the tax to ensure both horizontal and vertical equity. Tax compliance is a multiplicative function of the rate of tax, probability of detection, and penalty rate. The best practice approach to tax policy and reform is to evolve the system with a broad base, and low and less differentiated rates. Such a simple system with reasonable rates minimises the three costs associated with taxes namely, the collection cost to the government, compliance cost to the taxpayer, and distortion cost to the economy. Avoiding multiple objectives makes the tax system simple and broad-based and requires low tax rates to collect a given amount of revenue. A strong technology platform for administering the tax increases the probability of detection and enhances voluntary compliance. The paper discusses the important aspects of tax compliance in terms of design and the importance of technology in the administration of taxes in India.

GST: An Analysis Of The Collection And Contribution Of GST In FY 2022-23

Tax revenue is the major source of revenue for the Indian Government. The entire tax system is segregated into direct and indirect taxes. Both have their popularity in the country’s economy. Indirect tax is also called GST. GST stands for 'Goods and Service Tax'. About 175 countries have implemented GST and France was the first country to introduce the concept of GST in 1854 in the world. In India on 1st July 2017 the new concept of indirect tax i.e. GST was implemented. It is a single-livery indirect tax enforced in place of various types of indirect taxes that were imposed by central and state governments before GST such as VAT, excise duty, service tax, luxury tax, purchase tax, etc. Under GST the identical rate of tax applies to particular goods and services throughout the nation that is why it is also called ‘ One Nation, One Tax”. The responsible government either central or state imposes the GST on the supply of goods and services that take place in the country as well as outside the country (import and export). The main aims of the government behind the implementation of the GST were to bring the livery tax system, forbid the progression of black money, and simplify the Indian tax system. Goods and Service Tax has been making its contribution to the Indian economy every year since 2017. The present study sheds light on the collection of GST in FY 2022-23 and evaluates the contributions made by different constituents of businesses to GST. And also discussed the different components and objectives of Goods and Service Tax.

A Review of India Approaches to Cooperative Compliance in Light of the International Tax Practice and the OECD Framework

The OECD provides a framework for co-operative compliance. To the OECD-Forum on Tax Administration questionnaires covering the years 2018 and 2019, India responded that its international tax practice is in line with the OECD’s framework. This paper reviews select features of the Indian tax system that are in line with the response. The paper looks at contemporary tax compliance measures such as faceless assessments and dispute resolution that promote cooperative compliance. While it is seen that there have been recent policy innovations to promote cooperative compliance in India, the responses are not based on any structured cooperative compliance approach as that described by the OECD. It is observed that there are in fact some missing elements as many of the initiatives such as the large taxpayers’ unit that ticked many boxes but are no longer in operation. Finally, the paper identifies that single point of contact in the administration, opportunity to clear the past before joining a cooperative compliance framework and internal control framework are initiatives that can boost cooperative compliance in India. Cooperative Compliance, OECD, corporate governance, internal controls, tax control framework, tax certainty, tax assurance, India, tax reform, dispute resolution

Perception of Taxpayers Regarding New Income Tax Structure

Taxes are a crucial source of funding for government operations and one of the factors that determine a nation's ability to prosper economically. Taxes are monetary or other obligations that must be paid for a government to function. In India, taxes are divided into direct and indirect taxes, and they can be paid in cash or in the labor equivalent. Unlike indirect taxes, which affect disposable income indirectly. Income tax is a significant source of money and a powerful tool for reducing economic inequality. A tax levied on people or organizations that have different levels of income or taxable income is known as an income tax. The tax that the income tax division collects for the central government. India's tax-to-GDP ratio stood at 17–17.5 percent up till 2018–19. In India, the overall amount of taxes paid makes a significant contribution. By the end of January 2020, the government had received Rs. 7.52 lakh crore in direct taxes. Although while the Indian tax system has undergone significant improvements, it is still very far from being ideal. Many issues, including tax evasion, illicit income, and the existence of an analogous economy, show that the Indian tax system needs important reforms in the near future to address all these issues. The new income tax structure will help those who make modest investments. With the new tax system's seven lower-income tax slabs, everyone paying taxes without claiming tax deductions can benefit from paying a reduced rate of tax. The standard deduction benefit is extended to the new tax regime as well as the increase in the refund limit to Rs. 7 lakhs under the new income tax structure. The highest surcharge rate under the New Tax Regime has been decreased from 37% to 25%, making this choice the default tax regime. This study's objective is to investigate how taxpayers perceive the new income tax system based on four factors: tax compliance, tax awareness, tax evasion behavior, and tax complexity. Both the questionnaire approach and the descriptive analysis approach are utilized while gathering primary data. In this study, both secondary and primary data are utilized.

Development of Indian Tax System: Pre and Post-Colonial Influences

This article examines the origins, growth, and development of taxation practices in India. Based on multiple perspectives from historical research, the article divides up developments in the Indian tax system into four different governance regimes. These are the pre-colonial period (Ancient and Medieval), the colonial period (1857–1947), India as a Sovereign State under the 1950 Constitution (1950–1991) and post-economic liberalisation (1991–2020). In each of these periods, several major taxation developments that occurred in the country are reviewed, and the article highlights how different political and governance systems influenced the changes in the Indian tax system. Based on such changes and influence, the study also proposes agenda for future research. The article makes significant contributions to economic and business history research from a developing economy perspective and provides insights for any future developments in relation to tax systems.

Indian Tax System: Situation before and after Goods and Service Tax

Indian Tax System: Situation before and after Goods and Service Tax

Impact Of GST Law With Reference To E-Commerce Industry In India

Article 366(12A) defines the Goods and Services Tax (GST) as any tax on the supply of goods, services, or both, except taxes on the delivery of alcoholic drinks for human use. In the new Article 366(26A), the word “service” means something other than “products.” Article 366(12) states that all materials, things, and articles are considered to be products. The government considers the GST to be more of a tax reform than a change to the current Indian tax system. They are evaluating all the pros and cons of the indirect taxation system. India was one of 123 countries in the world that used the Value Added Tax (VAT) system. Finance minister P. Chidambaram created plans for VAT and presented them to the Centre and the States on January 17, 2005. VAT replaced the Central Excise Tax at the national level and the Sales Tax System at the state level, which made a significant change to the tax collection process. In 2014, it was proposed that the GST be implemented in India starting from June 2016. The GST is implemented in a “double” way, with one part handled by the Centre (CGST) and another by the State (SGST). The tax base is almost the same for both the federal government and the states. On July 1, 2017, the GST was implemented in India, with three main models: (i) Central GST, (ii) State GST, and (iii) Dual GST. The E-commerce industry in India has been contributing more and more to the Indian economy. To make the most out of a mature and profitable E-commerce industry, retail E-commerce businesses need a stable indirect tax plan to address tax assessment issues they have been facing. The implementation of GST is also expected to resolve many supply chain problems that E-commerce companies have been facing, leading to faster shipping and returns and reduced administrative work. This will also help businesses and E-commerce sites improve their supply chain methods by focusing on making better storage and organizational decisions driven by cost and service.

A STUDY ON EffiCIENT TAX SAVING MANAGEMENT THROUGH DIFFERENT TAX DEDUCTION IN THE OLD REGIME AND COMPARATIVE ANALYSIS BETWEEN “OLD TAX REGIME AND NEW TAX REGIME”.

Comparative analysis of old tax regime and new tax regime with respect to different tax slabs and income section. The paper also shows saving investment is an essential part of one’s life as our government allow tax deduction and exemption in the old tax regime, as a investors which tax regime will be helpful to individual according to their income section and investment purpose has been analysed in this paper. The paper is analysed with secondary data that are collected from various governmentplatforms and analysis of the topic, the research study shows that one individual how can take advantage of Indian tax system by investing in various tax saving scheme and comparative analysis of the old tax regime and new tax regime with different income section illustrates which will be saving more according to the individual.

India's evolving tax system: its successes and challenges

The goal of this study is to critically investigate several facets of India's tax structure. Every person of the country is responsible for paying taxes. The taxation system determines the economic power of a country. Our federal tax system is divided into three levels, the Union Government, the State Governments and the Local Bodies. As the author points out, despite the fact that the Constitution clearly divides taxing authority between the national government and the state government, due to the prevalence of several types of taxes, the Indian tax system has been exceedingly complex. Various tax compliance regulations and rules, tax administration is incompetent, and several other issues. Aside from reviewing the existing literature on the subject, the purpose of this research is to track the evolution of the Indian tax system through three different periods such as taxes in ancient India, taxes during post independent India, and taxes after independent India. Although Lists 1 and 2 of the Seventh Schedule of the Indian Constitution clearly define the Union government's and states' taxing powers, these original tax provisions have undergone a number of revisions over the years as a result of essential constitutional amendments. This research article also makes an attempt to provide a description of direct taxes; together with ‘Income tax’, ‘Corporation tax’, ‘Wealth tax’, ‘Gift tax’, ‘Estate duty’, and ‘other taxes on capital and property’, and indirect taxes for example ‘Customs duties’, ‘Excise duties’, ‘Sales tax’, ‘Service tax’, ‘Value added tax (VAT)’, and ‘Goods and services tax (GST)’. Finally, the research paper discusses some of the most pressing difficulties and obstacles. According to Bird (1993), ‘Fiscal crisis has been proven to be the mother of tax reform’. However, such reforms are frequently impromptu and undertaken to fulfil instant revenue needs. In most instances, such reforms are not in the nature of systemic improvements to increase the tax system's long-term productivity. The evolution of a tax system to satisfy the needs of international competition has been one of the most fundamental reasons for recent tax reforms in many emerging and transitional countries (Rao 1992). The shift from a mostly centrally planned development strategy to market-based resource allocation has altered public perceptions of the state's role in development. The transition from a public to a private sector, heavy industry reigned supreme, the shift from an import-substituting industrialization approach to one based on market signals has prompted fundamental reforms in the tax system. In an open, export-driven economy, the tax system should not only raise the required funds for social and physical infrastructure, but it should also reduce distortions. As a result, to maintain worldwide competitiveness, the tax system must adapt to the needs of a market economy. When the right approaches are followed, revenue remains stable and growth in our economy is managed. Any tax that is not backed by law or exceeds the legislative authority's powers is unconstitutional. In 1994, this authority became the basis for levying a tax on some services, and the 88th Amendment to the Indian Constitution gave the federal government the ability to tax services. The internationalisation of economic operations as a result of increased globalisation gave another reason for reform. In light of the recent shift to introduce GST, this article examines the structure of the Indian tax system, its constitutional framework, and current system modifications.

Tourism Development and Exchequer's Encouragment

Despite the arguments against the development of tourism a large number of positive aspects can be noticed in favour of tourism development. The data presented in this paper substantiates the need for development of tourism in India. It is observed that the yields emanated from this sector percolate to every corner of the economy and society starting from advanced cities to hamlets. As a result it leads to balanced and inclusive growth. To tap the latent potential of the tourism sector, it is necessary to make integrated efforts from all corners of the economy. One such effort focussed in this paper, has been initiated by the Indian Tax System. The system has designed various special provisions to motivate the sector, but they are scattered in various Acts. The knowledge of these provisions facilitate a sound tax planning. This paper makes an attempt to put important tax provisions, relating to different players in the tourism sector scattered in various tax laws, in one place to provide a basic understanding. It concludes that the sops offered by the exchequer are inadequate looking at the needs of the industry. This sector is a cash-cow. Its yields outweigh the sops and efforts. Hence, this sector needs focused attention from the policy makers.

The Indian Tax System

Dünyanın, sınırları bakımından en geniş ve en kalabalık ülkelerinden biri olan Hindistan, federal yapılı bir devlet olarak çok çeşitli etnik kökene sahip bir ülkedir. Hindistan’ın tarihi çok eski ve köklüdür. Dolayısıyla, ülkenin kanunları da her ne kadar yeni tarihli olsalar da, 2400 yıl önce yazılan kanunlara paralel biçimde gelişen geleneklere, kültüre ve yaşam tarzına bağlı kalmıştır. Ancak, dünyada küreselleşme olgusunun doğması ve gelişmesi neticesinde Hindistan da söz konusu gelişmeye kayıtsız kalamamış, elindeki ucuz ve bol işgücünü tarım ve özellikle de hizmetler sektörüne kaydırmış, böylece git gide artan oranlarda ekonomik büyümesini gerçekleştirmiştir. Hindistan’ın yakında dünyanın sayılı ekonomileri arasına gireceği öngörülmektedir. Ülkesinin imkanları çerçevesinde strateji geliştirerek, ekonomisiyle dünya sıralamasında kendine yer edinen Hindistan’ın bu politikası ve ülkeye ilişkin söz konusu politikanın literatürde yeni olması açısından, çalışma önem arz etmektedir. Ancak, Hindistan’ın bu politikası, ülkedeki kayıt dışılığı bitirmeye ilişkin bir önlem içermemektedir. Zira ülkedeki kayıt dışı istihdam ve ekonomi, dünyadaki diğer ülkelere nazaran oldukça yüksektir. Tam bu noktada ülkedeki vergi sistemi önem kazanmaktadır. Hindistan vergi sistemi, farklı yaştaki mükelleflere hitap eden gelir vergisiyle, merkezi özel tüketim vergilerini ve eyaletler katma değer vergileri gibi vergileri tek bir çatı altında toplayan mal ve hizmet vergisiyle ve de 2019 yılı Maliye Kanunu ile kurumlar vergisine dair yapılan değişiklikler ile yeniden yapılanmaya devam etmektedir. Ekonomik büyümede güçlü, kayıt dışı ekonomide oldukça zayıf bir ülke olan Hindistan’ın, en güçlü ve en zayıf yönünü etkileyen vergi sistemini incelemek, çalışmanın amacını oluşturmaktadır.

GST - Sway On Small Scale Industries

India being a democratic and republic country, has witnessed the biggest indirect tax reform after much exploration, GST bill roll out on 1 April 2017. The concept of this reform is for a unified country-wide tax reform system. Enterprises particularly SMEs are caught in a state of instability. Several taxes such s excise, service tax etc., have been subsumed with a single tax structure. it is the responsibilities of both centre and state government to shoulder the important responsibility to cater the needs of the people and the nation as a whole. The main basis of income to the government is through levy of taxes. To meet the so called socio-economic needs and economic growth, taxes are considered as a main source of revenue for the government. As per Wikipedia “A tax is a mandatory financial charge or some other type of levy imposed upon tax payer by the government in order to fund various public expenditure” it is said that tax payment is mandatory, failure to pay such taxes will be punishable under the law. The Indian tax system is classified as direct and indirect tax. The indirect taxes are levied on purchase, sale, and manufacture of goods and provision of service. The indirect tax on goods and services increases its price, this can lead to inflationary trend. Contribution of indirect taxes to total tax revenue is more than 50% in India, therefore, indirect tax is considered as a major source of tax revenue for the government, which in turn is one of source for GDP growth. Though indirect tax is a major source of revenue, it had lot of hassles. To overcome the major issues of indirect tax system the government of India subsumed most of the indirect tax which in turn gave birth to the concept called Goods and Service Tax.

Impact of goods and services tax on Indian economy

Goods and services tax is nothing new, but a well desired value added tax that covers both goods and services. Goods services tax is a tax that is levied on the valve added to a purchased supply before it is sold again. Goods and services tax is defined as the giant indirect tax structure designed to support and enhance the economic growth o f the country. Goods and services was based on the nation ‘one nation, one market, one tax’. Goods and services tax would change the current tax regime of production based taxation to a consumption based system. Goods and services Tax (GST) is essentially a tax only on valve of addition at each stage. GST will be on the transaction value, i.e. taxes will be levied on the price actually paid or payable. Hence, resulting in the contribution of making the Indian economy stronger and powerful. GST is proposed system of indirect taxation in India merging most of the existing taxes into single system of taxation. The main purpose of this paper is to study Impact of Goods and Services Tax on Indian economy. This research paper highlights the positive and negative impact of the GST in the Indian tax system. This study was done based on secondary data collected from multiple sources of evidence, in addition to books journals websites and newspapers.

Impact of GST on FMCG Sector in India

Goods and services tax (GST) is the biggest tax reform in Indian tax system. It includes excise tax, service tax, central sales tax, luxury tax, lottery tax, entertainment tax, octroi, state surcharge, and other surcharge on supply of goods and services. The GST replaced various multiple indirect taxes which were imposed on unlike items of goods and services. The GST helped in increasing central government revenue from past nine months, since GST has been introduced (1st of July, 2017) and solved the problem of “cascading effect” of tax. GST has emerged as “transparent taxation system” in the indirect taxation. Although GST will be more effective in coming future but presently it may not be free from constraints. The research paper will focus on framework of GST as well as Impact of GST on Fast Moving Consumer Goods (FMCG) Sector in India. After implementation of GST, FMCG Sector improved slightly as GST eliminated multiple-tax system.

Integrating Public Finance with Human Behaviour and Inclusive Growth – Case Study on Indian Tax System

This is a conceptual paper, the author discusses some fundamental assumptions regarding taxation. These assumptions need to be re-examined. The author has carried out a survey of fifty professionals in the field of tax administrations and based on discussions with them tried to identify the issue and perspectives for future. The author has found that over a period of time, progressive economies try to reduce tax rates, reduce number of tax payments, reduce number of time required on issues relating to tax compliances and simplify and computerize tax compliances, which create a better business environment. The author contend that there is a need to re-examine present tax system, present business system and present framework. They suggest a system which can promote and develop small and cottage industries and enable smaller business entrepreneurs to survive and grow. The author contends that there should be digital transactions using m-commerce and there should be transaction tax to encourage people to save and invest.

A Review of Canons of Taxation: India's Perspective

Adam smith proposed the canons of taxation for the efficient tax structure. These canons are well recognized and form the basic guideline for the tax system of any country. Indian tax system is one of established tax structure in the world. It has under gone many changes since 1961, the year in which current tax law came into the force. Is prevailing tax structure accommodating the canons of taxation as proposed by Adam Smith? In the present paper, these canons of taxation are reviewed critically with respect to existing Indian tax policies. The discrepancies or deviations observed are reported in a constructive way to eliminate the existing loop holes and build better and inclusive tax system.

The Challenge of Reforming Indian Tax System for Enabling Make in India

The Challenge of Reforming Indian Tax System for Enabling Make in India

The Challenge of Reforming Indian Tax System for Enabling Make in India

The Challenge of Reforming Indian Tax System for Enabling Make in India