What are the key factors contributing to the increase in net direct tax collections in India
Net direct tax collections have increased by 21.8% to ₹9.57 lakh crore.
There are several key factors contributing to the increase in net direct tax collections in India, which have seen a growth of 21.8% to ₹9.57 lakh crore. Here are the key factors:
- Economic growth: A growing economy leads to increased business activities and higher income levels, resulting in higher tax collections.
- Tax reforms: Introduction of reforms like the Goods and Services Tax (GST) has streamlined the tax structure and enhanced compliance, resulting in higher tax revenues.
- Increased tax base: Efforts to expand the tax base by bringing more individuals and businesses into the tax net have contributed to higher collections.
- Improved tax administration: Steps taken to enhance tax administration, such as the use of technology for data analysis and stricter enforcement, have improved compliance and increased tax receipts.
- Crackdown on tax evasion: Focused efforts to identify and penalize tax evaders have helped in curbing tax evasion and boosting tax collections.
- Demonetization: The demonetization drive in 2016 led to an increase in formalization of the economy, bringing more transactions under the tax net and boosting tax revenues.
- Anti-black money measures: Measures undertaken to curb the generation and circulation of black money have resulted in increased tax compliance and higher collections.
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