Table of Contents
- 1 Is direct tax more than indirect tax?
- 2 Which is the largest source of tax in India?
- 3 Which tax contributes maximum in the revenue collection in India?
- 4 Which is the major source of revenue in India direct or indirect?
- 5 What are the disadvantages of indirect taxes?
- 6 What is the taxation structure in India for the payment of income?
Is direct tax more than indirect tax?
It gradually declined to 47\% during the financial year 2020-21. During the financial year 2021-22, it is estimated that the proportion of direct tax to the gross tax revenue would stand at 49\%. This data shows that the dependency on indirect taxes has increased more than direct taxes.
Which is the largest source of tax in India?
corporation tax
Tax revenue can be classified into a few major categories — corporation tax, tax on income, Customs, Union excise duties, service tax, and several others. Corporation tax is the biggest source of revenue for the government.
How much direct tax does India collect?
The Gross collection of Direct Taxes (before adjusting for refunds) for the FY 2021-22 stands at Rs. 6,45,679 crore compared to Rs. 4,39,242 crore in the corresponding period of the preceding financial year, registering a growth of 47\% over collections of FY 2020-21.
What is the amount of indirect tax collection in India?
The net indirect tax collection in the first quarter of FY 2021-2022 was Rs 3,11,398 crore as against Rs 1,82,862 crore during the same period a year ago, representing a growth of 70.3 per cent.
Which tax contributes maximum in the revenue collection in India?
The correct answer is Corporate Tax. Corporate tax is the single largest source of income to the government of India. According to the Budget for 2019-20 presented in Parliament by Finance Minister Nirmala Sitharaman, Goods and Services Tax collections will contribute 19 paise in every rupee revenue.
Which is the major source of revenue in India direct or indirect?
The major source of tax revenue in India is generated through direct taxes. Some of the common direct taxes in India are income tax, securities transaction tax, corporate income tax, banking cash transaction tax, etc.
Which Indian state has highest tax revenue?
Own tax revenue list
| No. | State/UT | 2016-17 |
|---|---|---|
| All-states | 9129.1 | |
| Non-Special Category | ||
| 1 | Andhra Pradesh | 441.8 |
| 2 | Bihar | 237.4 |
What is the contribution of direct and indirect taxes in India?
In India, the indirect taxes have contributed to nearly 80\% of the tax revenues in early 1990s. Now, since 2007, direct taxes are contributing around 54\% of the central government’s tax revenue.
What are the disadvantages of indirect taxes?
Lacks Civic-Consciousness – As indirect tax is added to the price of the product or service, the consumers are generally unaware of the tax they are paying. This is opposite to direct taxes where the taxpayer clearly knows the taxes he/she is paying. 1. Imposed on
What is the taxation structure in India for the payment of income?
The provisions related to the payment and structure of income tax within the jurisdiction of India is outlined in the Income Tax Act of 1961. The taxation structure in India for the payment of income tax is progressive. A progressive tax structure indicates that there is an increase in the percentage of payment of tax with the rise in income.
Is India’s tax system progressive or regressive?
Hence, a tax system where bulk of the tax revenue is coming from indirect tax is regressive. On the other hand, a tax system where direct taxes contribute more to the tax revenue is progressive, equitable and hence is ideal. In India, the indirect taxes have contributed to nearly 80\% of the tax revenues in early 1990s.