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Elasticity of Non-Corporate Income Tax

Elasticity of Non-Corporate Income Tax in India Amaresh Bagchi M Govinda Rao ANUPAM GUPTA'S comment on our papery (EPW, July 16) in response to our criticism of his low estimates of the elasticity of the noncorporate income tax in India brings to the fore some important methods logical issues involved in the estima- tion of income elasticity of income tax and the pitfalls of reading more from the elasticity estimates than is warranted.

Elasticity of Non-Corporate Income Tax in India

Elasticity of Non-Corporate Income Tax in India Amaresh Bagchi M Govinda Rao Studies on tax elasticities in India have almost invariably found the income elasticity of the non- corporate income tax to be significantly below unity.

Inflation and Personal Income Tax- A Note

It is not true that our income tax has fatally ignored the effects of inflation. More often than not the limit has moved up more than was necessary to neutralise the inflationary impact. The harden on the lowest and the highest levels has also been neutralised. It is the middle ranges which hate suffered a higher tax incidence because of inflation. However, to regard this as an undesirable development is to assume that the pattern of graduation prevailing earlier was optimal, whereas it can he argued that the incidence of 12.3 per cent on an income of Rs 30,000 at 1970-71 prices (Rs 72,200 at 1981-82 prices) was too low to begin with.

Is New Tax Holiday Less Beneficial to Industry

The scheme of tax holiday for new industrial undertakings introduced in the Budget for 1980-81 has been criticised on the ground that it will result in the dilution of the benefit of tax holiday and thereby inhibit investment, especially in some key sectors like cement.

Agricultural Holdings Tax A Modified Scheme

Agricultural Holdings Tax: A Modified Scheme Amaresh Bagchi In the interests of both revenue as well as equity, the system of taxation of agriculture in India needs to be overhauled.

A Proposal for Reforming Corporation Tax

I S Gulati Amaresh Bagchi A tax system which taxes net profit provides a strong inducement to incur expenditures which are really not needed for business. Yet the consumption-inducing effect of profit taxation is seldom considered serious enough to outweigh its merits as an instrument of raising revenue.

Stock Valuation Rule Case for Revision

Continuance of the 'lower of cost or market' rule for stock valuation is totally indefensible. To allow taxpayers to anticipate losses on inventory valuation but not gains may be prudent on the part of accountants but does not stand to reason for purposes of taxation. It almost amounts to presenting Gov- ernment Revenue with a heads-I-win-tads-you-Iose alternative.

Efficacy of Tax Incentives-Tax Expenditure Analysis and Its Relevance for India

Nowhere, it seems, is faith in the patency of tax incentives to achieve a variety of objectives more deep-rooted than in India. The Indian Income-Tax Act bears eloquent testimony to this abiding faith.

Priorities for a Tax Programme

Devising an optimal tax system when there is a multiplicity of aims to be pursued and especially when there is no very easily definable trade-off between some of the aims

Dissecting the Tax Structure-Rejoinder

Rejoinder Amaresh Bagchi A REPLY to a book review is a rarity in itself and is seldom, in convention, countered with a rejoinder. Whether a critic's comments on a work are sound or superficial, whether the points on criticism are major or 'minor', 'analytical' or 'emotional, can hardly be settled through a debate between the author and the critic and is best left to be judged by the readers. How ever, when the author of the work reviewed alleges, as Ved P Gandhi does in his 'Reply' to my review of his 'Some Aspects of India's Tax Structure: an Economic Analysis' (April 15, 1972), that there has been gross mis-representation and mis-statement of his position, besides a lack of comprehension of elementary points, silence on the part of the reviewer is liable to be misunderstood.

Dissecting the Tax Structure

Dissecting the Tax Structure Amaresh Bagchi THE most obvious and, understandably, the most notorious fact about India's tax structure is the high scale of direct taxes. All the world knows that India is the "highest-taxed nation'', that here, with the maximum tax rate exceeding 80 per cent, "it pays more to evade tax on Rs 20/than to earn Rs 100/-" and that taxes on income, profits and wealth are killing all urges for growth. Indeed, going by the schedules of personal income-tax


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