Question

Which of the following are the problems associated with the Indian Taxation system?

• A.
  Less number of Income Tax payers
• B.
  Exemptions in various sectors
• C.
  Low tax:gdp ratio
• D.
  All the above

Answer 1

The correct option is D

All the above
Just a little over 1% of India's population and only 1.6% of the country's adult population pays income tax. Exemptions in various sectors to encourage various activities and industries leads to lesser revenues to the government and low tax to GDP ratio(9.88% -FY20)