Personal Income Tax in India: Alternative Structures and Their Redistributive Effects

Pulin B Nayak, Satya Paul

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Quite apart from its role of raising revenue, the personal income tax has long been regarded as a potent weapon of effecting distributive justice. This paper examines, first, the structure of personal income tax in India to check the extent of progressivity inherent in its structure and, second, the re-distributive effects of alternate income tax schedules that are (i) simpler in their structure (ii) earn no less aggregate revenue, and (iii) are in consonance with the current thinking in taxation, in that the top marginal tax rates are not too high.

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