Income tax

How rise in taxpayer base can benefit individuals as well as the economy

"For developing countries like India, tax is more than just a source of revenue. It not only helps in building up the economy of a country but also makes the government accountable to its taxpayers. From a government’s perspective, it helps in better planning and budgeting of a fiscal year, as the tax revenues are relatively predictable.

In the last couple of years especially after introduction of major reforms like ‘Demonetisation’ and ‘GST’; India has witnessed a significant increase in number of taxpayers and is evident by the direct tax collections of FY 2017-18 which was 18% higher than that of FY 2016-17."

Akhil Chandna
Director, Grant Thornton India LLP

This article appeared in Live Mint on 02nd July, 2018.