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Compliance Cost Burden of Individual Income-Tax Assessees in India: An Empirical Study

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  • Jaspal Singh
  • Poonam Sharma

Abstract

In the present paper, an attempt has been made to estimate the compliance burden (i.e. expenditure on various tax-activities like record-keeping, fees paid to professionals etc.) borne by individual assessees in India. From the various activities considered in this study that involves cost, it can be concluded that for most of the tax-activities, the median values reveals a monetary burden of up to Rs. 1000. Time burden for tackling income tax issues varies between 26 and 50 hours. The study of certain specified reasons governing the use of professional's services showed that Indian taxpayers are more concerned about the complexity and frequent changes in income tax laws. The findings suggest that there is a need to extend the use of withholding taxes besides other measures like taxpayer education programs, simplification of tax laws etc.

Suggested Citation

  • Jaspal Singh & Poonam Sharma, 2010. "Compliance Cost Burden of Individual Income-Tax Assessees in India: An Empirical Study," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 35(1), pages 7-24, February.
    • Handle: RePEc:sae:manlab:v:35:y:2010:i:1:p:7-24
    DOI: 10.1177/0258042X1003500101
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    References listed on IDEAS

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