Journal Press India^®

Author Details ( * ) denotes Corresponding author

The Indian tax system has successfully mobilised resources to finance administrative, welfare and developmental activities of public authorities. Besides being the main source of revenue for both Central and State Governments, it is an effective instrument to realise various socio-economic objectives of national policies. Further, tax policy is an important determinant of the investment climate in a country. This paper looks at the socio-economic objectives that the tax policy intends to achieve along with the steps taken to restructure the tax system in accordance with these objectives. Tax laws in India are replete with various exemptions, concessions, deductions, allowances, tax credits etc. to promote a host of desirable economic and social activities. These tax incentives encourage individuals and business entities to undertake activities desired by the government. ​

Keywords

Tax policy, Socio-economic objectives, Exemptions, Allowances

1. Government of India, Ministry of Finance. (1980). Report of the Expert Committee on Tax Measures to Promote Employment (Chairman: V.M. Dandekar).