Trends and Issues in Income-Tax Policy and Reform in India

?A BRIEF UNDERSTANDING : The system of taxation in India is still now very much primitive. For development of any(prenominal) nation and for civilization imposition of tax within the mannequin of logical structure is utmost necessary. Revenue raised is utilized for meeting the expenses of government as well as to drool out developmental works. In this context the felicitous recital of Justice Holmes is worthmentioning - Taxes are what we recompense for civilized society. I like to pay taxes. With them I buy civilization. In India too, attempts are being incessantly made to formulate a simplified and rational tax structure although the effectiveness of such attempts is debatable. ?TYPES OF TAXES : Imposition of tax in India is performed basically in cardinal ways by charging tax directly on income, wealth etc. which is cognise as Direct Tax and by levying tax directly on sales, production, import, export etc. which is known as Indirect Tax. The direct tax which is paid by individual to the Central Government of India is known as Income Tax. It is compel on our income and plays a vital role in the scotch growth & stability of our country. For familys the Government is generating revenue with this tax system. ?HISTORY OF REFORMS : The system of taxation in India throne be trailed to a long period ago.

Kautilya, the author of the historied book Arthashastra wrote about taxation. In ancient India, subjects used to pay a share of their income to the king. In lieu of that, the king provided them with the administration, surety from foreign aggression and other civic amenities. During the British rule, monetary crunch faced by the Government consequent to the Sepoy insurrection of 1857 prompted the Government to introduce the first Income-tax Act that was enacted in the year 1860. It remained in force for a period of 5 years. thenceforth it was renewed as License Tax on trades and professions in 1867. This Act of 1887 was the improved version. It introduced the definition of agricultural... If you want to get a full essay, order it on our website: Orderessay

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