POST STRATEGIC DIRECT TAX ENGINEERING TAX REVENUE PROGRESSION ASSESSMENT

Abstract

You don’t pay taxes–they take taxes."–Chris Rock PURPOSE – This research paper is to find out and assess the effectiveness of strategic planning 2010-15 by income tax department towards nation building process for optimization of revenue collection, ensuring tax law  compliances DESIGN/METHODOLOGY/APPROACH – The objectives were achieved by looking at total direct tax collection, cost effectiveness in tax collection, direct tax to GDP, Buoyancy factor, case disposal rate.The data regarding tax collections, GDP, case settlements, collection cost etc are collected from the published database by income tax department on their website over a period from 2005-06 to 2016-17.The dependent T test has been applied at the confidence level of 0.05 in order to determine the impact of strategic planning and contribution in nation building process. The author is optimistic in research work application per se with other emerging countries.FINDINGS – The research work demonstrated significant impact on tax collection and case settlement after 2011-12 but other factors like buoyancy factor, direct tax to GDP ratio and tax collection charges carry insignificant effect after adopting strategic move by income tax department on one hand and amendments through Finance bill 2011  onwards. PRACTICAL IMPLICATIONS – This paper will be proved as evaluation step in management of tax structure and policy formulation in Indian tax system. ORIGINALITY/VALUE – Our study would help understanding Indian tax system with reference to direct tax and parameters for its effective evaluation.