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India has low tax rates due to several factors including a low standard of living, high unemployment, lack of quality education, a large non-monetized sector, inefficient tax administration, political instability, taxpayer awareness, and lower international trade volumes. These causes contribute to India's overall low tax collection.
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Nandu
India has low tax rates due to several factors including a large non-monetized sector, lack of administrative efficiency in tax collection, unstable political conditions, psychology of taxpayers who do not want to pay taxes, and a lower volume of international trade compared to other countries. Unemployment, lack of quality education, and standard of living also contribute to India's low tax rates.
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This document summarizes a presentation given by Angel Melguizo at the OECD Task Force on Tax and Development about factors that influence tax morale. It discusses how tax morale is affected by perceptions of corruption, trust in government, satisfaction with public services, and support for democracy based on analyses of surveys in Africa, Asia, and Latin America. Higher tax morale is associated with lower perceived corruption, greater trust in government, higher satisfaction with healthcare, education, and social services, and more support for democracy. More data and research is still needed to better measure and understand tax morale across different countries and regions.
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China and India have experienced rapid economic growth in recent decades but have taken different paths. China has grown faster through higher investment rates, exports, and infrastructure spending while India's growth has been more equitable but slower. Both countries face issues of sustainability, inequality, and need to address agriculture and employment. While China has stronger manufacturing and infrastructure and India has advantages in services, both see opportunities in trading with each other and facing competition. Overall the countries share similarities in their large populations and economies but have taken different political and economic approaches.
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India has a long history of taxation dating back to 1922 when the country saw a major shift in its taxation system. The current system has a well-developed structure that clearly divides tax authority between the central government, state governments, and local bodies. In 1991, India's tax system underwent radical reforms including reducing customs and excise duties, lowering corporate tax rates, widening the tax base, and improving tax administration. Most state governments also replaced sales taxes with value-added tax starting in 2005. The central government levies both direct and indirect taxes.
Salini
Taxation is the biggest source of public revenue for modern governments. The equity principle of taxation refers to fairness and justice in distributing the tax burden. Equity has two aspects: horizontal equity means those equally well-off should pay equal taxes, while vertical equity means those better off should pay more taxes than others.
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This document outlines Taylor's classifications of public revenue sources, including grants-in-aid which are financial assistance between governments, administrative revenue from fees and fines, commercial revenue from goods and services, and taxes which are compulsory payments to the government without a direct benefit to the taxpayer.
Meera
Indirect taxes are paid by consumers through higher prices rather than directly by taxpayers. They have merits like being convenient to collect, elastic to adapt to economic conditions, equitable by taxing based on ability to pay, and promoting social welfare. However, indirect taxes also have demerits like being regressive by taking a larger share from low-income groups, creating uncertainty, discouraging saving, not being economical, and lacking a direct link between taxpayers and the government.
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Nandu
India has low tax rates due to several factors including a large non-monetized sector, lack of administrative efficiency in tax collection, unstable political conditions, psychology of taxpayers who do not want to pay taxes, and a lower volume of international trade compared to other countries. Unemployment, lack of quality education, and standard of living also contribute to India's low tax rates.
tax_morale
This document summarizes a presentation given by Angel Melguizo at the OECD Task Force on Tax and Development about factors that influence tax morale. It discusses how tax morale is affected by perceptions of corruption, trust in government, satisfaction with public services, and support for democracy based on analyses of surveys in Africa, Asia, and Latin America. Higher tax morale is associated with lower perceived corruption, greater trust in government, higher satisfaction with healthcare, education, and social services, and more support for democracy. More data and research is still needed to better measure and understand tax morale across different countries and regions.
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China and India have experienced rapid economic growth in recent decades but have taken different paths. China has grown faster through higher investment rates, exports, and infrastructure spending while India's growth has been more equitable but slower. Both countries face issues of sustainability, inequality, and need to address agriculture and employment. While China has stronger manufacturing and infrastructure and India has advantages in services, both see opportunities in trading with each other and facing competition. Overall the countries share similarities in their large populations and economies but have taken different political and economic approaches.
Rigil
India has a long history of taxation dating back to 1922 when the country saw a major shift in its taxation system. The current system has a well-developed structure that clearly divides tax authority between the central government, state governments, and local bodies. In 1991, India's tax system underwent radical reforms including reducing customs and excise duties, lowering corporate tax rates, widening the tax base, and improving tax administration. Most state governments also replaced sales taxes with value-added tax starting in 2005. The central government levies both direct and indirect taxes.
Salini
Taxation is the biggest source of public revenue for modern governments. The equity principle of taxation refers to fairness and justice in distributing the tax burden. Equity has two aspects: horizontal equity means those equally well-off should pay equal taxes, while vertical equity means those better off should pay more taxes than others.
Arun.s.k
This document outlines Taylor's classifications of public revenue sources, including grants-in-aid which are financial assistance between governments, administrative revenue from fees and fines, commercial revenue from goods and services, and taxes which are compulsory payments to the government without a direct benefit to the taxpayer.
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Indirect taxes are paid by consumers through higher prices rather than directly by taxpayers. They have merits like being convenient to collect, elastic to adapt to economic conditions, equitable by taxing based on ability to pay, and promoting social welfare. However, indirect taxes also have demerits like being regressive by taking a larger share from low-income groups, creating uncertainty, discouraging saving, not being economical, and lacking a direct link between taxpayers and the government.
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A single tax system levies taxes on only one subject and would be difficult to administer, not producing adequate revenue or a satisfactory distribution of the tax burden. A multiple tax system instead taxes various items, increasing government tax income in a more flexible way while checking tax evasion, but it involves higher collection costs.
Thadeus
The document defines various historical units of measurement used on farms in medieval England. The rod was a unit of length equal to 5 1/2 yards, the furlong was the distance an ox team could plow before resting standardized to 40 rods, and the acre was the amount of land one man could plow in a day with an ox. Larger units included the ox gang which was around 15 acres plowed in a season, the virgate plowed by two oxen, and the carucate plowed by eight oxen which was equal to 8 ox gangs or 4 virgates.
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Taxable capacity refers to the maximum amount citizens can contribute to public authorities through taxes without undue strain. Estimating taxable capacity allows governments to determine how much revenue can be raised, mobilize resources for development, and avoid imposing unnecessary taxes that hurt production and consumption. However, pushing taxes too far can curb consumption, cripple industry, and reach a point where additional taxation brings diminishing returns as taxpayers sell assets or take on debt to pay.
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A tax is a compulsory payment made by taxpayers to the government without expectation of direct benefits. A good tax system is compulsory, has multiple dimensions like rates and collection methods, is convenient to administer, considers taxpayer attitudes, and changes gradually over time in response to economic shifts. It should also support national goals, generate sufficient revenue, and remain flexible.
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Double taxation occurs when the same income is taxed twice by different tax authorities. This creates obstacles for economic development by increasing the costs of compliance for taxpayers and the difficulties they face, such as harassment. Double taxation is problematic because different states do not always follow the same tax rules and it can affect both debtors and creditors when a loan amount is taxed multiple times.
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Taxable capacity refers to the maximum amount of taxes that can be collected from citizens without negatively impacting production. Economists have defined taxable capacity as either reaching the point where taxpayers must borrow to pay taxes, or as the optimum level of public finances indicated by financial principles. Taxable capacity can be absolute, referring to the maximum without unpleasant effects in a community, or relative, comparing the capacities of different communities. Understanding taxable capacity is significant for public finance administration as taxes are a major source of government revenue.
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Taxation is the biggest source of public revenue for modern governments. It is the legal duty of citizens to pay taxes honestly on income, property, and purchases. A good tax system collects the minimum necessary from citizens based on their ability to pay, ensures maximum social benefits, and applies taxes universally without discrimination. It also maintains simplicity, acceptability to the public, and a balance between different types of taxes to fund common welfare.
Joby
British rule in India imposed various taxes on the traditional agricultural economy including import duties, customs duties, and export duties. The Sea Customs Act of 1878 and the Tariff Act of 1934 further established taxation policies during this time. Overall, British rule saw the imposition of new taxes on India's economy and trade.
Ajina
Taxable capacity refers to the maximum amount of taxes that can be collected from citizens without negatively impacting production. It is defined as the maximum ability of a community to contribute through taxation. Taxable capacity is assessed in both absolute and relative terms. Absolute taxable capacity is the maximum amount that can be collected without causing unpleasant effects, while relative compares capacities between communities. Understanding taxable capacity is significant for governments seeking to mobilize revenue sources and assess how much taxation citizens can bear.
Divya taxation during mugal period
Taxes during the Mughal period were collected primarily as land revenue, which was the most important source of income for Mughal rulers. The tax system is documented in contemporary court chronicles like Ain-i-Akbari. Rates of the zazia tax, imposed on non-Muslims, varied based on annual income levels from exempted for those earning less than 52 rupees to 480 dirhams (13 rupees) for those earning over 2,500 rupees annually. The discriminatory tax policies based on religion implemented by some later Mughal rulers contributed to the decline of the Mughal Empire after Aurangzeb's death in 1707.
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Jizya was a poll tax charged to non-Muslims in Islamic states, with exemptions for those engaged in military service, women, children, monks, beggars, blind and crippled. The Hindu population was divided into three groups for taxation purposes, with zakat being a fortieth on imports and later abolished on gains by Sikander Lodi, who distributed booty with one-fifth going to the state and the rest to soldiers.
Greeshma direct tax
Direct taxes are taxes imposed directly on individuals and corporations. In India, direct taxes are managed by the Central Board of Direct Tax. Examples of direct taxes include income tax, capital gains tax, and corporate tax. Direct taxes have merits like being easy to collect directly from the source and promoting personal responsibility, but they also have demerits like being unpopular due to reducing purchasing power and being easier to evade than indirect taxes.
Anitha
The taxable capacity of a country depends on several factors, including the size of national income, population, distribution of income, stability of income, pattern of taxation, nature of public expenditure, psychology of taxpayers, administrative efficiency, stages of economic growth, and political stability. Taxable capacity refers to the maximum amount of taxes a government can collect from its citizens without negatively impacting production.
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Public finance is the study of how governments collect tax revenue from citizens and businesses and how they spend these funds. Governments collect taxes and use the funds to provide public goods and services, manage income distribution, and conduct other operations. Government expenditures are financed through tax revenues and borrowing, with taxes including income taxes, sales taxes, corporate taxes, and duties. The goal of public finance is to manage resources efficiently and effectively to benefit citizens.
Salini
Taxation is the biggest source of public revenue for modern governments. The equity principle of taxation refers to fairness and justice in distributing the tax burden. Equity has two aspects: horizontal equity means persons equally well-off economically should pay equal taxes, while vertical equity means those better off should pay more taxes than others.
Meera
This document discusses the merits and demerits of indirect taxes. Indirect taxes are imposed on one person but paid by another, usually the consumer. The merits of indirect taxes include convenience of collection, elasticity to respond to economic changes, equity, promotion of social welfare, and progressiveness. However, the demerits are that indirect taxes can be regressive in nature, create uncertainty, discourage saving, be uneconomical, inequitable, and have no direct link to the government collecting the taxes.
Copy of salini
Taxation is the biggest source of public revenue for modern governments. The equity principle of taxation refers to fairness and justice in distributing the tax burden. Horizontal equity means people who are equally well-off economically should pay equal taxes, while vertical equity means those who are better off should pay more taxes than others.
Sabitha.
The document outlines the characteristics of an ideal tax system. An ideal system should:
1) Observe the fundamental principles or canons of taxation, such as being equitable, convenient, certain, and economical.
2) Be based on the ability-to-pay principle where taxes are allocated according to least sacrifice.
3) Ensure maximum social advantage by having a combination of different tax types, not just one tax.
4) Maintain a balanced mix of various tax types.
5) Apply universally to all individuals without discrimination.
Asha.a.s
Several factors determine a nation's taxable capacity including the size of national income, population size and growth rate, distribution of income and wealth, administrative efficiency, stability and growth of income, purpose and pattern of taxation, economic situations, standard of living, price levels, and political conditions.
Lavanya
After independence in 1947, India's tax system underwent major reforms to mobilize resources for development activities. In 1953, the Taxation Enquiry Commission studied India's central and state indirect taxes and found high levels of tax evasion. In the 1950s, following recommendations from economist Nicholas Kaldor, India introduced an integrated direct tax system along with new taxes like wealth tax and expenditure tax. Recent tax reforms focused on simplification and rationalization through committees and task forces. The 2006-2007 budget aimed to introduce a unified Goods and Services Tax by 2010.
Suresh tax
The document discusses four canons of taxation: productivity, elasticity, expediency, and coordination. The canon of productivity states that taxes should not interfere with production and maximize income. The canon of elasticity means taxes should be flexible. The canon of expediency refers to considering sound principles like people's views when designing the tax system. The canon of coordination notes that tax collection is difficult, so central and state governments coordinate agencies to collect taxes.
Sudheesh tax
This document discusses the impact and incidents of taxation. It notes that the tax incidence is highest for residents and lower for non-residents. It outlines the total income scope for residents as including income received or deemed received in India, as well as income accruing or arising outside India during the previous year. The scope for non-residents includes income received in India and income deemed received or accruing in India.
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Arya
A single tax system levies taxes on only one subject and would be difficult to administer, not producing adequate revenue or a satisfactory distribution of the tax burden. A multiple tax system instead taxes various items, increasing government tax income in a more flexible way while checking tax evasion, but it involves higher collection costs.
Thadeus
The document defines various historical units of measurement used on farms in medieval England. The rod was a unit of length equal to 5 1/2 yards, the furlong was the distance an ox team could plow before resting standardized to 40 rods, and the acre was the amount of land one man could plow in a day with an ox. Larger units included the ox gang which was around 15 acres plowed in a season, the virgate plowed by two oxen, and the carucate plowed by eight oxen which was equal to 8 ox gangs or 4 virgates.
Ramesh.m
Taxable capacity refers to the maximum amount citizens can contribute to public authorities through taxes without undue strain. Estimating taxable capacity allows governments to determine how much revenue can be raised, mobilize resources for development, and avoid imposing unnecessary taxes that hurt production and consumption. However, pushing taxes too far can curb consumption, cripple industry, and reach a point where additional taxation brings diminishing returns as taxpayers sell assets or take on debt to pay.
Vidhya tax
A tax is a compulsory payment made by taxpayers to the government without expectation of direct benefits. A good tax system is compulsory, has multiple dimensions like rates and collection methods, is convenient to administer, considers taxpayer attitudes, and changes gradually over time in response to economic shifts. It should also support national goals, generate sufficient revenue, and remain flexible.
Presentation1.ppt vinitha.v.v
Double taxation occurs when the same income is taxed twice by different tax authorities. This creates obstacles for economic development by increasing the costs of compliance for taxpayers and the difficulties they face, such as harassment. Double taxation is problematic because different states do not always follow the same tax rules and it can affect both debtors and creditors when a loan amount is taxed multiple times.
Ajina
Taxable capacity refers to the maximum amount of taxes that can be collected from citizens without negatively impacting production. Economists have defined taxable capacity as either reaching the point where taxpayers must borrow to pay taxes, or as the optimum level of public finances indicated by financial principles. Taxable capacity can be absolute, referring to the maximum without unpleasant effects in a community, or relative, comparing the capacities of different communities. Understanding taxable capacity is significant for public finance administration as taxes are a major source of government revenue.
Reemou
Taxation is the biggest source of public revenue for modern governments. It is the legal duty of citizens to pay taxes honestly on income, property, and purchases. A good tax system collects the minimum necessary from citizens based on their ability to pay, ensures maximum social benefits, and applies taxes universally without discrimination. It also maintains simplicity, acceptability to the public, and a balance between different types of taxes to fund common welfare.
Joby
British rule in India imposed various taxes on the traditional agricultural economy including import duties, customs duties, and export duties. The Sea Customs Act of 1878 and the Tariff Act of 1934 further established taxation policies during this time. Overall, British rule saw the imposition of new taxes on India's economy and trade.
Ajina
Taxable capacity refers to the maximum amount of taxes that can be collected from citizens without negatively impacting production. It is defined as the maximum ability of a community to contribute through taxation. Taxable capacity is assessed in both absolute and relative terms. Absolute taxable capacity is the maximum amount that can be collected without causing unpleasant effects, while relative compares capacities between communities. Understanding taxable capacity is significant for governments seeking to mobilize revenue sources and assess how much taxation citizens can bear.
Divya taxation during mugal period
Taxes during the Mughal period were collected primarily as land revenue, which was the most important source of income for Mughal rulers. The tax system is documented in contemporary court chronicles like Ain-i-Akbari. Rates of the zazia tax, imposed on non-Muslims, varied based on annual income levels from exempted for those earning less than 52 rupees to 480 dirhams (13 rupees) for those earning over 2,500 rupees annually. The discriminatory tax policies based on religion implemented by some later Mughal rulers contributed to the decline of the Mughal Empire after Aurangzeb's death in 1707.
Aswathy.c.s
Jizya was a poll tax charged to non-Muslims in Islamic states, with exemptions for those engaged in military service, women, children, monks, beggars, blind and crippled. The Hindu population was divided into three groups for taxation purposes, with zakat being a fortieth on imports and later abolished on gains by Sikander Lodi, who distributed booty with one-fifth going to the state and the rest to soldiers.
Greeshma direct tax
Direct taxes are taxes imposed directly on individuals and corporations. In India, direct taxes are managed by the Central Board of Direct Tax. Examples of direct taxes include income tax, capital gains tax, and corporate tax. Direct taxes have merits like being easy to collect directly from the source and promoting personal responsibility, but they also have demerits like being unpopular due to reducing purchasing power and being easier to evade than indirect taxes.
Anitha
The taxable capacity of a country depends on several factors, including the size of national income, population, distribution of income, stability of income, pattern of taxation, nature of public expenditure, psychology of taxpayers, administrative efficiency, stages of economic growth, and political stability. Taxable capacity refers to the maximum amount of taxes a government can collect from its citizens without negatively impacting production.
Presentation1.ppt abhijith.k.r
Public finance is the study of how governments collect tax revenue from citizens and businesses and how they spend these funds. Governments collect taxes and use the funds to provide public goods and services, manage income distribution, and conduct other operations. Government expenditures are financed through tax revenues and borrowing, with taxes including income taxes, sales taxes, corporate taxes, and duties. The goal of public finance is to manage resources efficiently and effectively to benefit citizens.
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Salini
Taxation is the biggest source of public revenue for modern governments. The equity principle of taxation refers to fairness and justice in distributing the tax burden. Equity has two aspects: horizontal equity means persons equally well-off economically should pay equal taxes, while vertical equity means those better off should pay more taxes than others.
Meera
This document discusses the merits and demerits of indirect taxes. Indirect taxes are imposed on one person but paid by another, usually the consumer. The merits of indirect taxes include convenience of collection, elasticity to respond to economic changes, equity, promotion of social welfare, and progressiveness. However, the demerits are that indirect taxes can be regressive in nature, create uncertainty, discourage saving, be uneconomical, inequitable, and have no direct link to the government collecting the taxes.
Copy of salini
Taxation is the biggest source of public revenue for modern governments. The equity principle of taxation refers to fairness and justice in distributing the tax burden. Horizontal equity means people who are equally well-off economically should pay equal taxes, while vertical equity means those who are better off should pay more taxes than others.
Sabitha.
The document outlines the characteristics of an ideal tax system. An ideal system should:
1) Observe the fundamental principles or canons of taxation, such as being equitable, convenient, certain, and economical.
2) Be based on the ability-to-pay principle where taxes are allocated according to least sacrifice.
3) Ensure maximum social advantage by having a combination of different tax types, not just one tax.
4) Maintain a balanced mix of various tax types.
5) Apply universally to all individuals without discrimination.
Asha.a.s
Several factors determine a nation's taxable capacity including the size of national income, population size and growth rate, distribution of income and wealth, administrative efficiency, stability and growth of income, purpose and pattern of taxation, economic situations, standard of living, price levels, and political conditions.
Lavanya
After independence in 1947, India's tax system underwent major reforms to mobilize resources for development activities. In 1953, the Taxation Enquiry Commission studied India's central and state indirect taxes and found high levels of tax evasion. In the 1950s, following recommendations from economist Nicholas Kaldor, India introduced an integrated direct tax system along with new taxes like wealth tax and expenditure tax. Recent tax reforms focused on simplification and rationalization through committees and task forces. The 2006-2007 budget aimed to introduce a unified Goods and Services Tax by 2010.
Suresh tax
The document discusses four canons of taxation: productivity, elasticity, expediency, and coordination. The canon of productivity states that taxes should not interfere with production and maximize income. The canon of elasticity means taxes should be flexible. The canon of expediency refers to considering sound principles like people's views when designing the tax system. The canon of coordination notes that tax collection is difficult, so central and state governments coordinate agencies to collect taxes.
Sudheesh tax
This document discusses the impact and incidents of taxation. It notes that the tax incidence is highest for residents and lower for non-residents. It outlines the total income scope for residents as including income received or deemed received in India, as well as income accruing or arising outside India during the previous year. The scope for non-residents includes income received in India and income deemed received or accruing in India.
Nandu copy
India has low tax rates due to several factors including a large non-monetized sector, lack of administrative efficiency in tax collection, unstable political conditions, psychology of taxpayers who do not want to pay taxes, and a lower volume of international trade compared to other countries. Unemployment, lack of quality education, and standard of living also contribute to India's low tax rates.
Mukhil
This document discusses different types of taxes. A progressive tax has increasing tax rates as the amount earned increases, so higher incomes are taxed at a higher percentage. A proportional tax has a fixed tax rate so the amount of tax is directly proportional to the amount earned, with the marginal tax rate equal to the average rate. Progressive taxes describe a distribution where the tax rate increases from low to high amounts, while proportional taxes have a consistent rate.
Joby
During British rule in India, taxes were primarily collected on agricultural production and international trade. Farmers paid taxes on their crops and land. The government also levied import and export duties on goods being shipped into and out of the country. Over time, laws like the Sea Customs Act and Tariff Act standardized and regulated customs and duties to generate government revenue.
Jaseem
Indirect taxes are paid by one person but the burden is shared partly or wholly by another person, such as sales tax and excise duty. Some merits of indirect taxes are that they are convenient to collect, revenue adjusts to economic activity so they are elastic, and they promote social welfare. However, some demerits are that indirect taxes can be regressive in nature, create uncertainty, discourage savings, be uneconomical, inequitable, and have no direct link to the government.
Amal tax
The document discusses absolute and relative taxable capacity. Absolute taxable capacity refers to the maximum amount of taxes that can be collected from individuals in a country without affecting production. Relative taxable capacity is the proportion in which communities can contribute taxes relative to other communities' capacities to contribute to common expenditures.
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Nanduneww
- 1. WELCOME
- 2. CAUSES OF LOW TAX IN INDIA
- 3. There are many causes affecting the low tax in India, they are describe as follows Standard of living Unemployment Lack of quality education Non-monetized sector
- 6. Wellness of tax payer