Strengthening Direct Taxes-Some Suggestions

Strengthening Direct Taxes Some Suggestions Aamresh Bagchi Revenue from direct taxes both personal and corporate has shown impressive growth in the years of economic reform. It would, however, be unwise to be complacent The ratio of direct tax collections to GDP in India still compares poorly with that in other developing countries. Rough calculations suggest that the ftax gap' continues to be quite large and the personal income tax is able to capture only about 50 per cent of its potential.