Determinants of Less Direct Tax Revenue Collection in India

Prof. Dinesh Sharma; Mohd Arif

Volume : VI, Issue : IX, September - 2016

Determinants of Less Direct Tax Revenue Collection in India

Prof. Dinesh Sharma, Mohd Arif

Abstract :

Direct taxes constitute the most important source of government revenue in developing countries like India. But when we compare our direct tax revenue collection from the developed and emerging countries, it is quite low. The combined direct tax revenue collection was Rs. 7,48,643 crore only in 2014–15 (combined direct taxGDP ratio was 5.81%). There may be a several reasons for the same. The present study is an attempt to evaluate the factors which may be responsible for less direct tax revenue collection in India