Our team of experts can deliver quality advisory services on various sectors like, NRI property taxation, capital gains tax, withholding taxation issues, individual and company income tax filing. Some Insight on Indian taxation rules: The basis of the Indian tax structure is laid down in the constitution of India. According to article of the constitution, a tax can be levied by the authority of the law.
The demonetisation of high-value notes and the introduction of a goods and services tax GST lay foundations for more robust and inclusive growth in the medium term. Of the Rs Thanks to demonetisation, banks now have enough information to identify depositors and large depositors can be and are being pursued to check their legitimacy.
Both direct and indirect revenues have risen, which indicates a sharp improvement in tax compliance. The increasing use of electronic modes of payment will also improve tax collection into the future.
Electronic payments and transfers provide an easy audit trail that enables governments to tax individuals and businesses and to track illegal transactions such as money laundering, financing of crime, terrorism and drug smuggling.
Electronic means of payment provide greater security for transactions despite the threat of cybercrime. Carrying large amounts of cash involves large risks of its own and fuels government inefficiency and corruption. Carrying out transactions by cash might also hurt the poor more than the rich, since it is harder to protect cash against theft, decay and natural disasters.
The second structural reform for — the long-awaited introduction of the GST — was essential for enabling further integration of domestic markets as well as reducing tax cascading. But forecasts predict that growth will pick up again in Using —12 as a base year, real GDP growth was 7.
The most pessimistic forecasts have the Indian economy growing at 6.
The sectoral composition of economic growth during —17 was markedly different from previous years. Gross value-added growth in agriculture, forestry and fishing — only 0.
The services sector also experienced higher growth in this period. These increases were accompanied by a sharp drop in mining sector growth from On the expenditure side, government and private consumption contributed significantly to gross value-added growth in Good monsoons and rising incomes in rural India led to an expansion of rural consumption by 11 per cent, and urban consumption grew by about 7 per cent.
Gross fixed capital formation as a percentage of GDP recorded a mild decline in —17 compared to —16, indicating that the sluggishness in domestic capital formation is continuing. Foreign direct investment inflows remained robust and this trend looks set to continue into — Numerous other indicators were also promising in The trade deficit is acceptable and sharp rises in direct and indirect tax collection following demonetisation and the implementation of GST has led to the fiscal deficit remaining within the targeted range.
Demonetisation and the GST were both momentous structural reforms for the Indian economy in Although their implementation caused temporary hardships to many, these reforms will contribute to faster, more transparent and more inclusive economic growth into the future.IMPACT OF TAX REFORMS SINCE As in other countries, the systemic reforms in the tax system in India in the s were the product of crisis but the reforms were calibrated on the basis of detailed analysis.
Tax reform since was initiated as a part of the structural reform process, following the economic crisis of Jun 30, · India's biggest economic reform in decades takes effect Saturday as a goods and services tax is rolled out. Goods and Services Tax (GST) is an indirect tax (or consumption tax) levied in India on the supply of goods and services.
GST is levied at every step in the production process, but is meant to be refunded to all parties in the various stages of . As one of the top professional services firms, PwC India is committed to delivering quality in advisory, tax and regulatory services in India.
TAX REFORMS IN INDIA * About: Tax reform is the process of changing the way taxes are collected or managed by the government.
Tax reformers have different goals.
Some seek to reduce the level of taxation of all people by the government. #Tax Reforms. GST, easier tax filing methodology and simpler tax structures - Prime Minister Narendra Modi-led government is working to enhance the government's revenue collection, at the same time ensuring that cumbersome taxes do not deter investors.