Can Tax on all Banking Transactions Replace Income Tax
Keywords:
Income Tax, Taxation, Banking Transaction, Reforms, Transactional Tax.Abstract
Discipline of tax is one of the most crucial discipline and any reforms pertaining to same not only changes the dimension of economy of any country but also have significant impact on the other fields including legal, economical and day to day life of individuals of that country. Taxation mechanism in India are serpentine in nature which are too complex in nature due to multiple taxes and the diverse range which makes the administration of taxation as a cumbersome process. Any proposal with an intent to reform this serpentine discourse for betterment of public and increasing revenue of government while adhering with the cannons of taxation as proposed by Adam Smith is welcomed by any State. Specially, the taxation regime pertaining to Income Tax in India is often criticised for its complex nature and previously a much heated debate pertaining to the said discourse was existed i.e., Can we abolish income tax or Can Income Tax be replaced by some other form of taxation? In 2014, a proposal in pursuance of same was put forth by Pune based Think Tank where replacement of Income Tax is suggested by implementing Banking Transaction Tax. The instant research discourse decodes this complex aspect as can we really replace Income Tax by Banking Transaction Tax in 2022 by holistically studying Income tax and Transactional taxes with statistical analysis and foreign case studies.
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