Consolidating I-T tailwinds

The tax base and its narrow geography need to expand for India's income tax rally to keep going

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India's political economy and its fiscal balance are skewed. A small minority (relative to India's population) of taxpayers contributes the most to tax payments. This money is spent on a lot of heads, including welfare programmes of the government.

In the past few years, the composition of the direct tax pool has been shifting away from taxes on corporate profits to personal incomes. A large part of this comes from salaried workers in the private and public sector.