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Income Tax deserves significant attention in a developing economy as it is one of the major sources of government revenue. Tax system of India has come a long way. Tax policymakers and tax administrators have been continuously adapting tax system to reflect changing economic, social and political circumstances. Moreover, restructuring of tax system has been a major component of fiscal reforms initiated since 1991 in an effort to keep pace with the changing global scenario on the basis of recommendations of Raja J. Chelliah Committee and Kelkar Committee. This book examines the Taxation of Income in India during post liberalisation period and policy perspective in this regard. It has analysed the growth of income tax revenue, performance of Income Tax Department and perception of tax professionals regarding Income Tax System in India during post liberalisation period.This book also highlights various tax reforms carried by the Government and recommends measures for further improvement.