(From Net ) As per 2013-14 Union Budget, personal income tax has been budgeted at Rs. 2,47,639 crore for the current fiscal year. This, as also in the past years, accounts for about 23 per cent of the total revenue receipts of the govt. The total gross tax revenue of the govt. (including the states share) stands at about Rs. 12.4 lakh crore (budgeted) in the current fiscal. A two per cent Banking Transaction Tax on current banking transaction can potentially generate about Rs. 15 lakh crore - more than compensating for the loss. The biggest criticism of the BTT is that a large fraction of consumption expenditure in India is still cash (83 per cent by my estimates in 2011, and informally verified by experts in Finance Ministry) and hence we would be leaving a large section of the population out of the tax-net. This is a fair criticism.
Posted on: Sun, 09 Mar 2014 16:17:52 +0000
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