The Personal Income Tax in India: Compliance Costs and Compliance Behaviour of Taxpayers

• Completion date जनवरी., 2002
• Sponsor Planning Commission
• Project leader Arindam Das-Gupta
• Other faculty Saumen Chattopadhyay
• Focus

  Major findings show that there appears to be a relationship between some components of compliance costs, including bribes and compliance. which exert a negative effect on tax revenue. Money compliance costs. bribes. and use of tax advisers were found to affect compliance adversely. However, the opposite is true for third party costs via the TDS. Time costs may, also positively affect compliance. For non-filers. a theoretical model was developed to study the impact of compliance costs on return filing behaviour. Implementation of a more extensive TDS. reducing the scope for avoidance, closer regulation of tax practitioners, increased automation of taxpayer records. and improved use of third party information are some of the important policy recommendations of the study.