A surge in the revenue from direct and indirect taxes has been contributing to economic development in the past years. Despite adversities, post-pandemic, India is gaining groundbreaking milestones. A remarkable inclination has been observed among the taxpayers despite the rise in the tax-paying slab.
A study shows an increase in revenues from tax in comparison with the last ten assessment years. It has been witnessed that Tax Revenues have increased almost 303 percent in the past twelve years. A big leap from Rs.6.2 lakh crore in the financial year 2010 to Rs 25.2 lakh crore for the financial year 2022 has been recorded. The GDP growth has been observed at 93 percent from Rs 76.5 lakh crore to a big jump to Rs 147.4 lakh crore. The (GST) Goods and Service Tax has been a major contributor to the increase in revenue, followed by the corporation tax. Along with this, income tax and corporate tax are other major contributors to the increase in the total tax revenue. According to a report from a renowned research agency, tax collection in the financial year 2023 is anticipated to rise by 8 percent.
Under the Modi-led government, the implementation of the (GST) Goods and Service tax has revolutionized the entire taxation system and has fueled the growth of the economy.
Direct tax collected in the year 2021-22 is about 14.10 lakh crore whereas, Indirect tax collected is 12.90 lakh crore. This figure is elaborately illustrated in the Press Information Bureau. The link is given below for a better understanding.
doc202241442201.pdf (pib.gov.in)
The post-pandemic economy has a whooping growth rate regardless of the increase in the tax-paying slab. What is a tax slab? It is a tax-paying system based on an individual’s income range. As the income grows, the tax slab also increases. But in a 135-crore nation, only 8-crore pay income tax.
India has been supporting new businesses, ever since the government introduced start-up India and Skill India policies. They have been a major driver for the growth of India’s economy. Therefore, Finance Minister Nirmala Sitharaman announced tax benefits for the start-ups, early this year. Furthermore, she again extended the time until the end of the financial year 2022-23 and announced a 100 percent tax rebate on profit for a period of three years in a ten-year time frame, provided that the total turnover is not more than 25 crores in one financial year.
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