Problems of Double Taxation in India

        This article is written by Dr. Ankita Gupta on Problems of Double Taxation in India. The article was published in 2015. Like many other countries India has a complex tax system. The tax system includes double taxation, direct and indirect taxes. This causes tax payers to pay tax more than once on the same amount, firm or land. This paralyzes the idea of neutrality therefore attention should be paid to this problem and remedy should be found in order to maintain a balance. Developing country like India needs to develop an improved and efficient tax system so the burden on tax payer is reduced.

    In order to find solution for this problem GST has been made, GST means Goods and Services Tax. GST has an advantage for people of low or middle income as it will charge tax with respect to income. Requirement for a simple tax system is greatly needed as mentioned in IT Act 1961 and advocated by Chelliah committee in 1992.  It is important to find a simpler tax system to avoid double taxation but it is also important for the Indian government to maintain the revenue levels. (Gupta 2015)

1) Problems of Double Taxation in India

Financial accounting is the advanced branch of accounting which has to do with the money transactions of a firm. With the help of certain guidelines these transactions are recorded, summarized and presented as a financial statement. The article is about the double tax system of India, the firms and public pay tax more than once. The article and the course text book both have discussion over money. Money is the common factor connecting both.

2) Problems of Double Taxation in India

    Double taxation is a common issue in India. Everyone face this problem every day, from rich to poor. Yes, I have faced this issue in my professional career when I got my annual bonus. Tax was deducted from my income as well as bonus. In this way I paid tax twice in one month.

3) Problems of Double Taxation in India

    The article briefly discusses the ever growing problem of double taxation in India. The author presented all the issues that arise due to this problem and gave some suggestions like development of GST, implication of reforms, revenues are increased. In my opinion, the points that author suggested at this developmental stage of India. As drastic decisions cannot be taken because it will affect the investment of foreign counties in India and economy growth will be affected and will result in inflation.

4) Problems of Double Taxation in India

    The article is based upon larger issue which is currently underway in India double taxation has become common issue in the country as it leaves great affects the financial conditions of a common man and business of a businessman. When an amount is earned by a firm they pay tax over it. When the amount is distributed among shareholders and employees, income tax is on it. In this way double tax is paid over the same money and the firm has to pay tax more than one time.

5) Problems of Double Taxation in India

    Yes, the items mentioned in data are reliable. As it includes; bill expenses, water, newspaper, good, cloth, conveyance, communication, entertainment and family expenses and child allowances.

6) Problems of Double Taxation in India

    The accounting professionals act as audits and make financial statements. The current situation is increasing the work load and the accounting professionals are learning how to cope with such situations if it arises or it gets worse in future, they are learning ways how to overcome the problem.

7) Problems of Double Taxation in India

    Research queries for the author are from “suggestions” that she presented, what is the need of charging indirect tax on the economy as India when direct tax of 57% is obtained?

8) Problems of Double Taxation in India

    I agree with many points presented in the article. The author convinced me as a reader and presented valid points with suggestions and proofs.

9) Problems of Double Taxation in India

    The general accounting profession well to the article as there is noticeable difference in economy of growth of India plus double taxation has also been reduced as MAT regime is present.

Reference of Problems of Double Taxation in India

Gupta, Dr. Ankita. 2015. "Problems Of Double Taxation In India." 599-619.