A Comparative Study of Corporate Tax in India and the State of Punjab

Author(s): Rama Rani

Abstract:

The direct tax contributes as a major source of revenue to the total tax revenue of the government. The biggest component of the direct tax, as well as total tax revenue of the government, is the Corporate Tax as it contributes around 1/3rd of the gross tax revenue of the government. The share of it in gross tax revenue in the year 2009-10 was 39.2 per cent amounting to Rs.244725.07 crore which reduced to 34.7 percent and 31.1 percent respectively in 2013-14 and 2015-16. (Comptroller and Auditor General of India: Combined Finance and Revenue Accounts, 2015-16). Punjab government has taken significant measures to promote industries and specifically micro, small and medium enterprises in past few years, which gave a substantial rise to the corporate sector in the state of Punjab. Thus, Punjab is an emerging state in area of corporate sector. The present study compares the corporate tax collection in India and Punjab as a percentage of gross domestic product and Gross state domestic Product. The study also compared the buoyancy coefficients in India and Punjab. The study covered the period of eleven years from 2010-11 to 2020-21.

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Pages: 126-129     |    4 View     |    1 Download