A Study on The Income Tax System in India

ABSTRACT

Governments rely heavily on taxation to fund their operations, and a countrys level of economic success is largely defined by its tax system. An effective tax system that reduces bureaucracy and discourages tax avoidance is good for company and the economy as a whole. On the other hand, there is a tax structure that does not permit simple tax avoidance, and there is a tax framework that does permit tax evasion. The business environment is expensive, which slows economic growth. Even with all the changes that have been made, Indias tax structure is far from perfect. Tax evasion, over-reliance on indirect taxes, black money, and the growth of a parallel economy are just a few of the problems that suggest Indias tax system may need substantial revisions in the future. In the following research article, the author makes an effort to examine how Indias taxation system has developed through time. The study piece emphasises the significance of the recently implemented Goods and Services Tax (GST) in India and the reliance of individuals on indirect taxes rather than direct taxes.

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