Direct Tax Collection Flashcards
Why is direct tax called progressive tax ?
It increases with the income of individuals/entities
Some examples of direct tax ?
Income Tax
Capital Gain Tax
Security Transaction Tax
Which board monitors direct tax ?
CBDT
Full form of CBDT
Central Board of Direct Tax
Which department is CBDT in ?
Department of Revenue
Which Ministry is Department of Revenue under ?
Ministry of Finance
What has been percentage increase in number of returns of direct tax in 4 years ?
80%
What has been the percentage increase in number of persons filing income tax returns ?
65%
What is tax buoyancy ?
Ratio of % growth in tax revenues to growth in GDP
What is tax buoyancy an indicator of ?
Efficiency of tax revenue mobilisation
How has demoneitsation helped in direct tax collection ?
By removing anonymity in cash deposits to banks
How has GST made direct tax evasion difficult ?
Businesses have to disclose their annual turnover
How has the growing economy helped in greater direct tax ?
Middle class size has grown
What are some other ways the system became efficient to encourage direct tax collection ?
- Online platform
2. Hassle Free Refund
How has Aaykur Setu helped ?
It is an app to help people understand direct tax, PAN, etc
How has linking Aadhaar to PAN cards helped ?
Increased surveillance
How has Arbind Modi panel helped ?
Drafting new direct tax legislation
How has income declaration Scheme helped ?
Offered tax evaders an oppurtunity to disclose income
How does high tax buoyancy help the economy ?
Government borrows less,
Lower Interest
What is crowding effect ?
Large amounts of government borrowing leads to high interest rate, increasing loan rate for individuals
How does direct tax collection help the fiscal health of the country ?
Government can spend more on social sectors
What are other benefits of Direct Tax collection ?
- Maintain Inflationary Trends
2. Lower indirect tax
How is Inflationary Trends maintained by direct tax collection ?
By maintaining the interest rate