ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 УДК 336.22(540)
Абхишек М Коллур, студент международного медицинского института Курского государственного медицинского университета, Курск, Россия
Email: abhishek.kollur@icloud.com
ОСНОВНЫЕ ХАРАКТЕРИСТИКИ НАЛОГОВОЙ СИСТЕМЫ В ИНДИИ
Аннотация: в статье изучены особенности налогообложения в Индии, основные виды налогов, динамика налоговых поступлений в бюджет
Ключевые слова: Индия, налоговая система
Abhishek M Kollur, student of the International Medical Institute, Kursk State Medical University, Kursk, Russia
Email: abhishek.kollur@icloud.com
THE MAIN CHARACTERISTICS OF TAX SYSTEMS IN INDIA
Abstract: the article examines the peculiarities of taxation in India, the main types of taxes, the dynamics of tax revenues to the budget
Keywords: India, tax system
A direct tax can be defined as a tax that is paid directly by an individual or organization to the imposing entity (generally government). A direct tax cannot be shifted to another individual or entity. The individual or organization upon which the tax is levied is responsible for the fulfilment of the tax payment. The Central Board of Direct Taxes deals with matters related to levying and collecting Direct Taxes and formulation of various policies related to direct taxes. A taxpayer pays a direct tax to a government for different purposes, including real property tax, personal property tax, income tax or taxes on assets, FBT, Gift Tax, Capital Gains Tax, etc.The term indirect tax has more than one meaning. In the colloquial sense, an indirect tax such as sales tax, a specific tax, value-added tax (VAT), or goods and services tax (GST) is a tax
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).The intermediary later files a tax return and forwards the tax proceeds to the government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by the government from the persons (legal or natural) on which it is imposed [2].
First, tax revenue is the predominant source of revenue of the Union Government. Though, over time, non-tax revenue is yielding larger revenue, the importance of tax revenue in the tax structure is undeniable.
However, compared to other countries, India still lags far behind. In Western countries, tax-GDP ratio moves around 30-40 p.c. This means that the amount of tax collection in India in relation to GDP is miserably low.
2014 2016 2013 2020 2022
Figurel: Indian corporate tax rate (1997-2022) [3].
India is having a broad based and extensive tax structure. Its main feature is the existence of multiplicity of taxes. There are both union government taxes and state government taxes. The tax structure includes both dried and indirect taxes.In the case of states indirect taxes play a dominant role, in the composition of tax revenue. Among the direct taxes imposed in India, the most important is income tax. Other prominent taxes are wealth tax capital gains tax, gift tax etc. The indirect taxes in India Consists of excise duties, customs duties, etc. The important taxes levied by the union government are income tax, corporation tax, central excise duties, wealth tax, gift tax, custom duties etc. In India in the total tax revenue there is the domination of indirect taxes over direct taxes. Indirect taxes shared 63% in 1950 - 51 where it increased to 77% in 2001-02. If shows that because of the undeveloped character of the economy and glaring inequality in income, the scope of direct taxes is limited. In-spite of rising
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 trend in tax revenue, the total revenue remained small when compared to developed countries. The tax GDP ratio generally remained in the range of 8 percent to 9 percent in India where as it is very high in countries like Sweden, France, West Germany, UK, USA, etc. where the share ranges between 30 to 40 percent. In Indian fiscal federalism much importance is assigned to state governments. The field within which tax revenue, are raised and spend regularly is very wide in India when compared to many federal governments [4].
This reflects the importance of state government in our federal system. This is because of the growing responsibilities of the state government in the discharge of developmental activities. In India the incidence of taxation is much higher in urban areas than in rural areas this is because of the predominance of agriculture in rural area and low income of rural households. The urban population depends more on service and business sector and enjoys comparatively higher income and tax paying capacity. Indian tax structure is framed in such a way that all indices of ability to pay is taxed. The direct tax is framed in such a way that as tax base increases, tax rate also rises sharply. Excise duties are levied and collected discriminately, depending on the type of commodity and the class of consumers. Fiscal experts opine that the tax base is very narrow in India in the case of both direct and indirect taxes.
? 0 Maximum Expenses Threshold in 2023
? 20.000 Long-term infrastructure bonds Limit in 2023
? 25,000 Equity Linked Savings Scheme Investment Limit In 2023
0.5% Equity Linked Savings Scheme Investment Rate in 2023
? 40.000 Medi Claim Premium Cap in 2023
? 10.000 Interest on Saving Account Deposits Cap in 2023
? 1.00.000 Interest on Residential House Cap in 2023
? 1.00.000 Employee National Pensions Scheme (NPS) Cap in 2023
? 1.50.000 Employer National Pensions Scheme (NPS) Cap in 2023
Figure2: Income tax of India in 2023[5].
A planning commission estimate shows that only one percent of working population comes under the preview of direct tax. In 2000 - 01, total income tax on the corporate income was only 2.6 percent GDP. Out of a population of more than
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 100 crores, around 10 million are coming under the Income tax belt. The indirect tax to GDP ratio is only 5.4 percent in 2003- 04. The service sector, though contributing the largest share in GDP was not subject to tax till 1993-94.Service tax was introduced in the year 1994-95. Service sector, even though accounts for more than 50 percent of GDP, contributed Rs. 14200/- Crores as tax in 2004- 05. This is a small share when compared to the vast potential from this sector. With the intension of broad based tax system, a plethora of changes have been introduced in the tax structure. However both direct and Indirect tax laws are highly complex, with a lot of loopholes which enable the people to avoid as well as to evade taxes. In this context Prof. Kaldore observes "there are definitional defects in India's tax system, which gives elaborate power to tax authorities to interpret tax laws according to their whims and fancies. This has generated wide spread corruption in tax departments". After independence concrete efforts were made to organize the tax structure scientifically in tune with the requirements of a federal set of government. At present there is well-organized machinery for the collection distribution and expenditure of the revenue [6].
The 2023 tax tables are provided in support of the 2023 India Tax Calculator. The India 2023 tax tables provide additional information in relation to 2023 tax returns in India. Please note that the India Income Tax Slabs for 2023 are, to the best of our knowledge, accurate and up to date. If you believe that one of the 2023 tax rates or 2023 income tax thresholds for India have changed from those we have published, please contact us and advise us which tax rates and/or thresholds have changed. The 2023 India Tax Tables here are used as part of the 2023 India Salary Calculator.
GST has eliminated indirect taxes, since its implementation on 1 July 2017. It is the 101st Amendment to the Indian Constitution. GST is a multi-stage, designation based comprehensive tax imposed at each value addition stage. The replacement of multiple indirect taxes in the country has helped India's Government achieve its "One Nation One Tax" program. However, India has adopted a dual GST model, which means that GST is administered by both the Central Government and the State Government. Multi-stage because it is levied right from the purchase of raw material
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 to the sale of the finished product to the end consumer i.e. on each stage of the supply chain whenever there is added value and each transfer of ownership. Destination based since the location where the government obtains GST is the final place of purchase. The government of Maharashtra earns GST if a fridge is manufactured in Delhi but sold in Mumbai. A significant advantage of GST is the simplification of taxes for government agencies in India [7].
References:
1. Taxation in India - https://www.investindia.gov.in/taxation
2. Classification of tax - https://byjus.com/free-ias-prep/taxation-india/
3. Figure1 - https://tradingeconomics.com/india/corporate-tax-rate
4. Structure of Indian tax -https://www.economicsdiscussion.net/taxes/indias-tax-structure-5-characteristics/6505
5. Features of Indian tax // accountingnotes.net)
6. GST - https://bnwjournal.com/