Does cultural economics affect country’s competitiveness?

Abstract

This research paper endeavours to investigate and analyse the taxation system in India which began with the enactment of the Income Tax Act, 1961. It attempts to highlight the various taxes that Indians are liable to pay, understand their incidence and implications on the Indian economy and its citizens, and further explore the challenges faced by the Tax Administrator and policymakers in the context of revenue collection, taxation reforms and revenue leakages. In light of recent developments, the paper evaluates the role of intellectual property rights and the taxation framework for startups with the help of comparative international taxation frameworks. It also focuses on the challenges taxpayers may face in light of the Goods and Services Tax (GST) and the efficacy of the Direct Tax Code (DTC) to simplify and reinvigorate the Indian taxation system post-GST. The paper concludes with a few key recommendations in an attempt to modernise the Indian taxation system while ensuring making it more efficient, equitable and inclusive.

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