This is despite the fact that corporate taxes accounted for more than half of India’s total direct taxes until 2019-20, although their share is now less than half. Corporate taxes accounted for an average of almost two-thirds of total direct taxes during the United Progressive Alliance (UPA) government’s second term. Their share went below half…
Indirect taxes contribute more than 40% to the Centre’s tax kitty and the goods and services tax (GST) has a dominant share of it. GST, one of the biggest structural reforms since Independence introduced by the Modi Government in its first term, has completed seven years since its rollout in July 2017. India was transformed…
In the budget for 2024-25, Union finance minister Nirmala Sitharaman had announced a comprehensive review of the Income Tax Act, aiming to make it concise, lucid and easier to understand. According to Sitharaman, with these reforms the finance ministry seeks to reduce disputes and litigation, providing tax certainty to taxpayers. While all these objectives are…
In response, the government partially restored the benefits to a segment of taxpayers. However, as the FM has promised re-visiting and simplifying the entire structure of direct taxes, it is worth taking a closer look at these issues. Indexation in capital gains was first introduced in the 1992-93 Budget, when the FM then had stated,…
On one hand, there is an ‘embarrassment of riches,’ with rapid growth in both direct and indirect taxes, high and stable economic growth, and moderate inflation—all of which suggest that the economy is in a sweet spot with enormous potential for expansion. Alongside these riches, there are many signs of simmering discontent, as indicated by…
