Chelliah Committee Recommendations on Indian Fiscal Policy! The committee, set up in August , submitted its Interim Report in February , and final. Tax Reforms Chelliah Committee Report — I Guiding Principles of Tax Reform he guiding principles underlying the tax reforms proposed by the Committee. Raja Jesudoss Chelliah (12 December – 7 April ) was an economist and founding He served as chairman of Tax Reforms Committee of Union Government between and and as chairman of the Tax Reforms and.

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New measures to curb tax avoidance by transfer pricing were introduced in the budget. Ramachandra Gowda and Ravi. To give suitable Measures to take further steps towards Reforming to overcome the Loopholes in the Tax System. In this tune the government of India appointed various committees cnelliah time to time for making recommendations to improve the existing tax system. Scope of the Study The Scope of the study is looking into the following aspects to find ways for taking further steps towards Reforms in Indian Tax System.

Also, the share of direct taxes in gross tax revenue rose from 19 p. Objectives of the Study 1. Steps Taken by the Central Government for Implementation. Sincea number of provisions were introduced to widen the tax base.

Restricting Taxation of Wealth to unproductive assets.

Import duties which rose to more than p. In the area of indirect taxes the process of rate reduction, rationalisation and simplification of procedures were further carried forward.

Chelliah Committee Recommendations on Indian Fiscal Policy

In most cases, such reforms are not in the nature of systemic improvements to enhance the long run productivity of the tax system.

He was the founding director of the National Institute of Public Finance and Policy hcelliah Banerji Mirza Hameedullah Beg P.

Rationalization of the Existing Direct Tax system, Clubbing of Income of minor child with that of the parent. Retrieved from ” https: The peak level of customs cjelliah was scaled down to 35 percent with the abolition of 10 percent surcharge. In developing economy like India, tax occupies a strategically important position in the overall development of the country due to its significant contribution to the national exchequer, which is ultimately spent on the dhelliah development of different sectors of the economy.


It is indeed true that the robust economic growth and improved performance mainly of the services and manufacturing sector- have helped to keep tax revenues buoyant during It is suggested that reforms are made through simple calculation, simple language and single code for all transaction so that confusions and litigations are reduced.

It shows that The Vhelliah committee recommendations on tax structure made a remarkable change in the Tax Revenue of India. Dhar Jyotindra Nath Dixit M. Corporation profit tax including taxation of foreign entities, the issue relating to business taxation, interest tax, agricultural income chelliau, gift tax and tax on charitable organizations.

Several cehlliah are being taken since The present study is undertaken to check whether the implementation of the recommendations of the Chelliah committee made any remarkable changes in the Tax to GDP ratio of India. Ckmmittee is suggested that reforms are necessary for Indian Taxation so that leads to economic development of the country. The committee made several important recommendation covering both direct and indirect taxes including tax administration. Rao opined that the Indian tax system was characterized by a high dependence on indirect taxes, low average effective tax rates, high marginal effective tax rates and large tax induced distortions on investment and financing decisions and therefore reforms should be aimed at improving fiscal consolidations, lowering the committed tax burden and reducing tax induced distortions.

Chelliah Committee Recommendations on Indian Fiscal Policy

There is emphasis upon minimizing distortions in tax policy, which implies reduction cheliah the marginal rates of taxation with a view to keeping the economy competitive. The Committee recommended the continuance of the levy of gift tax, since it discourages transfer of assets for reducing the total tax liability of a family. De Are you satisfied with 33 22 69 46 10 6. It is suggested that government chwlliah not tinkering with the tax rates and slabs every year because it will influence the tax revenue and Tax — GDP ratio.

One of the most important reasons for recent tax reforms in many developing and fhelliah economies has been to evolve a tax system to meet the requirements of international competition Rao The government of India has not implemented fully by the recommendations of the Chelliah commmittee.


Raising gift Tax Exemption limit to Rs. Raja Chelliah in order to examine and recommend. The principles that have guided the financing of tax proposals in the Budget were the need for growth in revenue, simplifications and nationalisation of the tax regime and effective tax compliance.

His father Cheliah Nadar was his greatest inspiration. Efforts should be made cheliah a Stable Tax Regime. Direct Tax Administration i Return of income accruing from business and profession Enquiry Committee Mahavir should be allowed to be submitted after four months of closing Tyagi Committee date of accounting year, and for others up to 30th June, ii The prescribed forms of return of assessment, should be sent by post to the accesses from the income tax department.

To encourage the flow of foreign capital, it is also necessary to reduce tax rates of foreign companies. Thirdly large number of exemptions was to be removed.

And if today the government feels erport its resources are inadequate and it has no alternative but to have resource to public debt and deficit financing, it is mainly due to its colossal unproductive expenditure and complete indifference to the canon of economy.

Taxation of Capital gains through Inflation adjustment. Shantaram Shivkumar Sharma Chelliaah K. The study is Descriptive in Nature and Data collected from secondary sources.

An additional levy called National Calamity Contingent Duty was imposed on cigarettes, pan masala, bidis, etc.

Finding ways and means for Increasing the Elasticity of the tax revenues in both direct and indirect taxes. Major Findings of the Study The Major findings of the study based on primary and secondary data are as follows. The then system failed to take in committed of price inflation over the period during which taxable gain has occurred.

This gain needs to be consolidated further. The basic approach has been to move to tax structure which is simple, relies on moderate tax rates with a wider base and better enforcement and serves the objectives of repotr and administrative efficiency.

Padma Vibhushan award recipients.