{"id":32487,"date":"2018-10-29T15:00:51","date_gmt":"2018-10-29T09:30:51","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=32487"},"modified":"2018-11-19T15:07:46","modified_gmt":"2018-11-19T09:37:46","slug":"in-the-net","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/in-the-net\/","title":{"rendered":"In the net"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/todays-paper\/tp-opinion\/in-the-net\/article25304540.ece\">In the net<\/a><\/p>\n<p><strong>News: <\/strong><\/p>\n<ol>\n<li>The article discusses about the low share of direct taxes in the total pool of taxes inspite of the wider tax base in this net.<\/li>\n<\/ol>\n<p><strong>Important Facts:<\/strong><\/p>\n<ol start=\"2\">\n<li><strong>Data: <\/strong><\/li>\n<\/ol>\n<ul>\n<li>According to data released by the Central Board of Direct Taxes (<strong>CBDT<\/strong>), the total number of tax returns filed in the country increased by over 80% over the last four financial years from 3.79 crores in 2013-14 to 6.85 crores in 2017-18.<\/li>\n<li>Further, the direct<strong> tax to GDP ratio<\/strong> rose to 5.98% in 2017-18, the highest in the last 10 years.<\/li>\n<li>With tax growth rate surpassing the growth in GDP, the <strong>tax buoyancy factor<\/strong> rose to 1.81.<\/li>\n<\/ul>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-29243\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/10\/tax.jpg?resize=644%2C101&#038;ssl=1\" alt=\"\" width=\"644\" height=\"101\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/10\/tax.jpg?w=644&amp;ssl=1 644w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/10\/tax.jpg?resize=150%2C24&amp;ssl=1 150w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/10\/tax.jpg?resize=300%2C47&amp;ssl=1 300w\" sizes=\"auto, (max-width: 644px) 100vw, 644px\" \/><\/p>\n<ul>\n<li>The <strong>total direct tax collection <\/strong>is estimated to be over Rs. 10 lakh crore in 2017-18, an increase of about 18% from the previous year.<\/li>\n<li>The direct tax collection in 2017-18 has increased at a higher rate compared to the collection of indirect taxes.<\/li>\n<li>The average income reported by individual and corporate taxpayers also witnessed a significant rise in the last three years.<\/li>\n<\/ul>\n<ol start=\"3\">\n<li><strong>Reasons for widening tax base:<\/strong><\/li>\n<\/ol>\n<ul>\n<li>Better gathering of information about sources of income.<\/li>\n<li>Ease of getting refunds.<\/li>\n<li>Lowering of various other tax compliance costs.<\/li>\n<\/ul>\n<ol start=\"4\">\n<li><strong>Concerns:<\/strong><\/li>\n<\/ol>\n<ul>\n<li>The share of direct taxes has fallen every single year since 2013-14, except this year.<\/li>\n<li>It is also far too low when compared to its peak of over 60% in 2009-10.<\/li>\n<li>Most of the rise in the total tax collection in the last few years has come from indirect tax collections.<\/li>\n<\/ul>\n<ol start=\"5\">\n<li><strong> Advantages of direct taxes:<\/strong><\/li>\n<\/ol>\n<ul>\n<li>An increase in the share of direct taxes will help the government to lower regressive indirect taxes that impose a significant burden on the poor.<\/li>\n<li>Direct taxes are also a better choice from the standpoint of economic efficiency as they help avoid the severe distortionary effects of indirect taxes such as the Goods and Services Tax.<\/li>\n<\/ul>\n<ol start=\"6\">\n<li><strong> Way forward:<\/strong><\/li>\n<\/ol>\n<ul>\n<li>A draft a new direct tax code should be emphasised upon to further widen and deepen the tax base.<\/li>\n<\/ul>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-29244\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/10\/the-direct.jpg?resize=638%2C124&#038;ssl=1\" alt=\"\" width=\"638\" height=\"124\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/10\/the-direct.jpg?w=638&amp;ssl=1 638w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/10\/the-direct.jpg?resize=150%2C29&amp;ssl=1 150w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/10\/the-direct.jpg?resize=300%2C58&amp;ssl=1 300w\" sizes=\"auto, (max-width: 638px) 100vw, 638px\" \/><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the net News: The article discusses about the low share of direct taxes in the total pool of taxes inspite of the wider tax base in this net. Important Facts: Data: According to data released by the Central Board of Direct Taxes (CBDT), the total number of tax returns filed in the country increased&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/in-the-net\/\">Continue reading <span class=\"screen-reader-text\">In the net<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[860,862,221,217,861,859],"class_list":["post-32487","post","type-post","status-publish","format-standard","hentry","category-test-1","tag-direct-taxation","tag-direct-taxes","tag-economy","tag-gs-3","tag-tax-net","tag-taxation","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704687263},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/32487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=32487"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/32487\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=32487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=32487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=32487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}