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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Jasbir Singh Bajaj B.
To widen the tax net, in the budget, a service tax at the rate of 5 p. Restricting Taxation of Wealth to unproductive assets. The Present excise tax system should be gradually transformed into VAT at the manufacturing level. Such firms pay corporation tax. The Times of Commiftee. Raising the monetary limit of contributions to charitable organizations.
The Committee opined that the system of long term capital gains lacked rationality. The government of India has not implemented fully by the recommendations of the Chelliah committee. The constructed regression model is a time series model in which time period is independent variable and Direct Tax Revenue is dependent variable.
Sincea number of provisions were introduced to widen the tax base. The committew from a public sector based, heavy industry dominated, import International Journal of Research in Social Commitfee http: Thus, the tax system has to adjust to the requirements of a market economy international competitiveness.
Amendment of section regarding searches etc. Taxation of Capital gains through Inflation adjustment.
The foundations of an efficient fiscal regime have been made. The peak level of customs duty was scaled down to 35 percent with the abolition of 10 percent surcharge. Rao opined that the Indian tax system was characterized by a high dependence on indirect taxes, low average effective tax rates, high marginal effective tax rates and large tax induced distortions on investment and financing decisions and therefore reforms should be aimed at improving fiscal consolidations, lowering chelliah marginal tax burden and reducing tax induced distortions.
Tax Reforms Committee: Interim report
Views Read Edit View history. New measures to curb tax avoidance by transfer pricing were introduced in the budget. In many developing countries, the immediate reason for tax reforms has been the need to enhance revenues to meet impending fiscal crises.
The transition from a predominantly centrally planned development strategy to market based resources allocation has changed the perspective of the role of the state in development. 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. 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.
Chelliah Committee Recommendations on Indian Fiscal Policy
Personal income-tax has been restructured with lower taxes, fewer slabs, a higher exemption limit and reduced saving linked tax exemptions. Basic custom duties were adjusted upwards for a number of agricultural items. Some of their recommendations so far taken up by the government for implementation have been duly enacted through the finance act. Direct Tax Administration i Return of income accruing from business and profession Enquiry Committee Mahavir should be allowed to be submitted after four months of closing Tyagi Committee date of accounting year, and for others up to 30th June, ii The prescribed forms of chwlliah of assessment, should be sent by post to the accesses from the income tax department.
The proposed model examines whether the regression coefficient of the model is differ significantly from zero because the impact of the Chelliah commitfee recommendations are assumed to made significant impact on the Direct Tax Revenue.
Since, before the reform-era began, ad valorem excise duties had been replaced by specific duties, the revenue of the Government from this source had fallen. The Government of India constituted a committee in August a high level committee under relort Chairmanship of Dr.
This gain needs to be consolidated further.
Raja Chelliah Tax Reforms Committee
Improvement in tax administration procedures, removal of harsh and complicated provisions and appellate procedures. Rationalization of the Existing Direct Tax system for removing anomalies, improving equity and sustaining economic incentives. Raising comimttee Income tax Exemption limits.