Chelliah Committee Recommendations on Indian Fiscal Policy! The committee, set up in August , submitted its Interim Report in February , and final. Tax Reforms Chelliah Committee Report — I Guiding Principles of Tax Reform he guiding principles underlying the tax reforms proposed by the Committee. Raja Jesudoss Chelliah (12 December – 7 April ) was an economist and founding He served as chairman of Tax Reforms Committee of Union Government between and and as chairman of the Tax Reforms and.
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Sharma In this article author discussed the systemic reforms in the tax system in India, Paradigms of Tax Reforms. The tax reform measures aimed at increasing resource mobilisation, i. It is suggested chelliau reforms are made through simple calculation, simple language and single code for all transaction so that confusions and litigations are reduced.
Consequently, very little surplus is left for corporate capital formation. Recipients of the Padma Vibhushan in public affairs births deaths University of Madras alumni Fulbright Scholars.
Retrieved celliah ” https: Due to resource and time constraint, only Chelliah Committee Report and period from to ,its impact on Tax Revenue and Tax-GDP ratio has been selected for detailed study. The tax to GDP ratio of India from to is under taken cmomittee the inception of the Chelliah committee.
Chelliah Committee Recommendations on Indian Fiscal Policy
Sincea number of provisions were introduced to widen the tax base. At present, there is double taxation of partnership firms.
You must be logged in to post a comment. Thirdly large number of exemptions was to be removed.
Indian Tax Reforms Committee (Recommendations)
The Government of India accepted most of the recommendations made by Raja Chelliahcommittee and implementation have been duly enacted through the finance Act some of the Recommendations are Restructuring and Rationalization of the Tax System, simplification of tax structure and tax administration to make them equal with international standards, Improvement in Tax Administration ProceduresIncentives- wise borrowing for housing loans was suggested, large number of exemptions was to be removed.
The present study is undertaken to check whether the implementation of the recommendations of the Chelliah committee made any remarkable changes in the Tax Revenue of India. Basic custom duties were adjusted upwards for a number of agricultural items. Shantaram Shivkumar Sharma Umayalpuram K. Thus, there has been a progress in fiscal correction. Identifying new areas of taxation to increase Productivity. He died on 7 April The Repodt Tax Revenue of India from to is under taken after the inception of the Chelliah committee.
Several steps are being taken since Targets for tax collection should be fixed on some realistic basis. It comjittee suggested that Government should consider all the recommendations made by Chelliah Committee so that it can remove all the loop holes of the Tax system. The Objective behind reform is orienting the tax structure towards an open and competitive economy by improving its efficiencies and tax revenues on a sustainable basis.
Conclusion The Chelliah Committee has found out major issues of the Tax system and they suggested wonderful Recommendation which is plugged loopholes of tax system. Implementation of estimated income chelliab with respect to those assesses whose total annual business turnover is more than Rs.
Now almost every conceivable direct and indirect tax is levied in this country. There is emphasis upon minimizing distortions in tax policy, which implies reduction in the marginal rates of taxation with a view to keeping the economy competitive. Improvement in Tax Administration Procedures.
Research Methodology The present study Descriptive in Nature, data extracted fromsecondary Sources viz. So Reforms are necessary. Reportt Read Edit View history. There is also a need to adjust the taxation to suit the needs of growing market orientation to the economy which calls for reducing the tax differentials across the states, broadening the tax base with minimal exemption and incentives and bringing about the much needed transparency for better tax compliance.
They suggested for increasing the tax collections to meet the growing demands of government expenditure by reducing concession and exemptions, tapping the rural rich, need of rationalization disclosure scheme with stiff penalties. Such firms pay corporation tax. Reduction in the number of income tax rate slabs. Since Independence, a number of committees were constituted by the Government of India for suggesting reforms in the Indian Tax System.
Raising of Income tax Chellia limits. Tax incentives in the form of tax holidays for development of infrastructure were rationalised and enlarged. A High reporf of 30, 40 chelliqh 50 per cent could be levied on non- essential commodities or commodities injurious to health. Therefore it can be conclude that the Direct Tax Revenue is increased significantly from to and it is significantly different from zero.
Thus, the tax system has to adjust to the requirements of a market economy international competitiveness. Improvement in tax administration procedures, removal of harsh and complicated provisions and appellate procedures. Inflation adjustments for capital gains for tax purpose. The motivation for these reforms has varied from one country to another and the thrust of reforms has differed from time to time depending on the development strategy and philosophy of the times.
The basic approach has been to move to tax structure which is simple, relies on moderate tax rates with a wider base and better enforcement and serves the objectives of equity and administrative efficiency. Patel Venkatraman Ramakrishnan K.
Steps Taken by the Central Government for Implementation. Sharma and Shyam critically analyzed background of the post- tax reforms measures, observed that changes in respect of exemption limit and the rate structure have served the objective of ushering in an era of moderate tax rates with the hope that this will contribute to an improvement in tax compliance.
The committee made several important recommendation covering both direct and indirect taxes including tax administration. This gain needs to be consolidated further. The excise duty structure which was rationalised to a single rate 16 percent CENVAT Central Value Added Tax in was further improved with the reduction of three special excise duty rates 8 percent, 16 percent and 24 percent to a single rate of 16 percent.
In this tune the government of India appointed various committees from time to time for making recommendations to improve the existing tax system.
De Are you satisfied with 33 22 69 46 10 6. Food preparation based on fruits and vegetables were completely exempted from excise duty. Public Finance Fiscal Policy S.