• Pankaj Agarwal

Tax is the major source of revenue for the government, the development of any country’s economy largely depends on the tax structure it has adopted. A Taxation Structure which facilitates easy of doing business and having no chance for tax evasion brings prosperity to a country’s economy. Direct taxes primarily include income taxes paid by individuals and corporate taxes paid by firms. Greater revenue collection reflects greater income, both of individuals and corporate entities, which in turn means better employment opportunities and greater ease-of-doing-business in a state. Thus, one can say states which have higher revenue collections are generally also states which have greater avenues for economic activities. Prime Minister Narendra Modi announced that his government has set a goal of making India a $5 trillion economy by 2024-25. Following PM Modi’s announcement, Uttar Pradesh Chief Minister Yogi Adityanath announced he too plans to make his state a $1 trillion economy. Both the goals are ambitious, and if achieved will do wonders for the Indian economy. In the following paper, the study is purely based on secondary data. Various figures are obtained from the different websites of government of India. In this paper it is observed that how direct tax revenue can affect the Indian Economy and what are the effects of recent tax reductions in direct taxes on overall revenue in India.

Direct Taxes, Indirect Taxes, Tax Rates, Taxation, Tax Collection

"EFFECTS OF REDUCTION IN TAX RATES ON OVERALL REVENUE FROM INCOME TAX", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.7, Issue 4, page no.1262-1276, April-2020, Available :http://www.jetir.org/papers/JETIR2004171.pdf

"EFFECTS OF REDUCTION IN TAX RATES ON OVERALL REVENUE FROM INCOME TAX", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.7, Issue 4, page no. pp1262-1276, April-2020, Available at : http://www.jetir.org/papers/JETIR2004171.pdf