Chelliah Committee Recommendations on Indian Fiscal Policy! The committee, set up in August , submitted its Interim Report in February , and final. Tax Reforms Chelliah Committee Report — I Guiding Principles of Tax Reform he guiding principles underlying the tax reforms proposed by the Committee. Raja Jesudoss Chelliah (12 December – 7 April ) was an economist and founding He served as chairman of Tax Reforms Committee of Union Government between and and as chairman of the Tax Reforms and.
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Major Findings of the Study The Major findings of the study based on primary and secondary data are as follows. Current tax system is 1. The law and procedure relating to valuation should be simplified and specific duties should reporf replaced vhelliah ad valorem duties in respect of most goods. The Government of India accepted most of the recommendations made by Dr. In this they have recommended rationalization, simplification, Improving of Productivity, efficient and transparent tax system.
Chelliah Committee Recommendations on Indian Fiscal Policy
Import duties which rose to more than p. Sincea number of provisions were introduced to widen the tax base. Raising gift Tax Exemption limit to Rs. Rao opined that the Indian tax system was characterized by a high dependence on indirect taxes, commityee average effective tax rates, high marginal effective tax rates and large tax induced distortions on investment and financing decisions and therefore reforms should committef aimed at improving fiscal consolidations, lowering the marginal tax burden and reducing tax induced distortions.
He was a member of the Planning Commission between and also member of the Finance Commission from Some repoort their recommendations so far taken up by the government for implementation have been duly enacted through the finance act.
His father Chelliah Nadar was his greatest inspiration.
Indian Tax Reforms Committee (Recommendations)
One of the most important reasons for recent tax reforms in many developing and transitional economies has been to evolve a tax system to meet the requirements of international competition Rao Krishnaswamy Rao Pattadakal Venkanna R.
In an export-led open economy, the hcelliah system should not only raise the necessary revenues to provide the social and physical infrastructure but also minimize distortions. In many developing countries, the immediate reason for tax reforms has been the need to enhance revenues to meet impending fiscal crises.
In Government of India faced financial crisis and political instability that leads to Investments slowdown, fall of Foreign Trade, Fiscal Crisis etc. Since Independence, a number of committees were constituted by the Government of India for suggesting reforms in the Indian Tax System.
The impact of the Chelliah committee recommendations is studied by fitting the linear regression line to the Direct Tax Revenue of India from to Gill Hafiz Mohamad Ibrahim H. The partners also pay personal income tax. Ministry of Finance, New Delhi They are given below; Recommendations Implemented by the Government 1.
The basic approach has been to move to tax structure which is repport, relies on moderate tax rates with a wider base and better enforcement and serves the objectives of equity and administrative efficiency.
They suggested for increasing the tax collections to meet the growing demands of government expenditure by reducing concession and exemptions, tapping the rural rich, need of rationalization disclosure scheme with stiff penalties. At the same time it suggested that where specific rates have to commitee retained, these were to be revised—taking into account the rate of price inflation.
Rationalization of the Existing Direct Tax system, Clubbing of Income of minor child with that of the parent. Tax the rich especially heavily said Kaldor: Basic custom duties were adjusted upwards for a number of agricultural items. The present tax system is complicated and difficult to interpret, leading to many disputes and court cases.
Raja Chelliah Tax Reforms Committee
He was born on 12 December xommittee Amendment of section regarding searches etc. Secondly it aimed at widening the tax base. Food preparation based on fruits and vegetables were completely exempted from excise duty. Business firms cannot take long-term decisions if there are year-to- year changes in the tax system of the country.
Shantaram Shivkumar Sharma Umayalpuram K. Since, before the reform-era began, ad valorem excise duties had been replaced by specific duties, the revenue of the Government from this source had fallen.
From this chelkiah it can be infer that the impact of Chelliah committee recommendation is significantly increased the Tax to GDP ratio between to The exemption limit may be raised to Rs.
Raja Chelliah – Wikipedia
The recommendations have been made by the committee, with a view to make the tax system generate revenue in an efficient and equitable manner.
Indian states derive approximately 65 percent of revenue from own sources, the remaining 35 percent being the transfers from the centre. The recommendations are follows: The present study is undertaken to check whether the implementation of the recommendations of the Chelliah committee made any remarkable changes in the Tax to GDP ratio of India.
Hence the Null hypothesis is rejected.
Padma Vibhushan award recipients. Several steps are being taken since A High rate of 30, 40 or 50 per cent could be levied on non- essential commodities or commodities injurious to health.
Targets for tax collection should be fixed on some realistic basis. Revision of Tax Exemption limit.