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Tax Professionals’ Perception of the Income Tax System of India: An Empirical Evidence

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Author Info
Jaspal Singh
Poonam Sharma
Abstract

Tax consultants play a very significant role in the revenue collection process by helping their clients understand the complex tax system and meet their legal obligations. In India, much effort has not been devoted to analyze the views of tax consultants pertaining to the reasons that enabled the use of their services by the clients. The objective of the present paper is to incorporate the suggestions of tax consultants for simplifying the complex tax procedure. Factor analysis results reveal that seven factors—reduction in tax evasion, extension of relief to taxpayers, incentives for dependents and honest taxpayers, broadening the tax base, e-filing of return, adequacy of assistance programs and deductions and impact of the Exempt-Exempt-Tax system—play an important role in determining the effectiveness of the Indian tax system. It was also found that majority of the respondents were not satisfied with important issues like price level adjustment of tax rates and adequacy of expenditure on social welfare.

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Publisher Info
Article provided by Icfai Press in its journal The Icfai Journal of Public Finance.

Volume (Year): V (2007)
Issue (Month): 1 (February)
Pages: 45-56
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Handle: RePEc:icf:icfjpf:v:05:y:2007:i:1:p:45-56

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