Some Issues In Personal Income Taxation

A careful study of the 1984-85 Budget raises several doubts about the government's fiscal strategy. In the first place, is this the appropriate strategy w hen the Seventh Plan is on the anvil? Secondly, what is the effect of the tax changes on the equity of the tax system? Thirdly, will the Finance Ministers expectations about tax compliance materialise? And. finally, what is likely to be the total effect on the tax liability of the assessees? These issues are here examined with respect to the proposed changes in personal income taxation.