How to make India tax compliant?

Description

Rewarding honest behaviour, not coercive actions, can go a long away in bringing more people into paying taxes Finance Minister Arun Jaitley, while addressing the annual meeting of CII in Delhi on April 28, observed that some tough steps are necessary to make India a tax-compliant society. Earlier, in his Budget speech, Jaitley had presented some startling facts. He mentioned that of the 4.2 crore persons employed in the organised sector, only 1.7 crore filed returns. Similarly, of the 5.6 crore individual enterprises and firms operating in the informal sector, only 1.8 crore filed their returns. Finally, out of 13.9 lakh companies registered in India, only 6 lakh companies filed their returns; of which 36,448 showed profits above ?1 crore. This statistics defies logic in a country which boasts of luxury villas, expensive cars, rising gold imports, a booming stock market, significant rise in international travellers, and ever-increasing high networth individuals. The FM is correct in pushing for higher tax-to-GDP ratio. However, given that 30 per cent of population is poor, 28 per cent is illiterate, 8 per cent is above 60 years of age, and nearly two third of the population is dependent on tax-free agriculture income, direct tax collection is expected to be rather benign. Read more at: https://www.thehindubusinessline.com/opinion/how-to-make-india-tax-compliant/article22003064.ece1#

Publication Date

5-5-2017

Publication Title

The Hindu Business Line

Publisher

THG Publishing Pvt. Ltd.

Keywords

Finance management, Taxation, Financial behaviour

Source Link URL

https://www.thehindubusinessline.com/opinion/how-to-make-india-tax-compliant/article22003064.ece1#

Link to Full Text

Share

COinS