International Journal of Research in Social Sciences
Year : 2018, Volume : 8, Issue : 8
First page : ( 82) Last page : ( 88)
Online ISSN : 2249–2496.

Personal income tax in India: Impact on private and public sector tax

Mr Gautam Arun¹, Dr. Shivnani Tina²

¹Research Scholar, Dept. of Commerce, Manipal University, Jaipur

²Assistant Professor, Dept. of Commerce, Manipal University, Jaipur

Online published on 5 August, 2019.

Abstract

Income tax is one of the most crucial direct tax reforms in India. It refers to the annual charge levied on the income generated from salaries, wages and commission (earned income) or from rents and interests (unearned income). Progressive income taxation is implemented to ensure even distribution of wealth among the entire population, in addition to raising public revenue in stabilizing the economy. The Income Tax Act (1961) establishes rules that govern income tax in India. Personal income tax is the one levied on income generated by individuals. This paper presents an overview of the income tax imposed on the private and public sector employees and its effect on the economic growth of the country.

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Keywords

Tax, Private Sector, Public Sector, Income tax, India.

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