International Research Journal of Commerce , Arts and Science

 ( Online- ISSN 2319 - 9202 )     New DOI : 10.32804/CASIRJ

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RELATIVE CONTRIBUTION OF DIRECT AND INDIRECT TAX TO TOTAL TAX REVENUE IN INDIA

    2 Author(s):  REKHA RANI , USHA POONIA

Vol -  5, Issue- 5 ,         Page(s) : 230 - 239  (2014 ) DOI : https://doi.org/10.32804/CASIRJ

Abstract

This study has been conducted to study the relative contribution of direct and indirect tax to total tax revenue in India . This research is based on secondary data collected from RBI’s handbook of statistics on Indian economy and other published resources. Simple percentage analysis has been used as analysis tool to analyse data of direct and indirect taxes . Data have been represented using tables and line charts. Data pertaining to direct and indirect tax have been analysed for 22 years i.e. since 1991-92 to 2012-13. It is concluded on the basis of this study that the contribution of central direct tax to total central tax revenue has increased year by year whereas central indirect tax contribution has decreased since 1991-92 but in last three years starting from 2009-10 the contribution of central direct tax has started decreasing. In case of states’ taxes, proportion of indirect tax has always remained higher with high per centage in comparison of direct tax revenue. Overall, the contribution of indirect tax has always been remained more in total tax revenue but the percentage gap between the two has reduced to a large extent year by year.

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