Impact of Direct Tax and Indirect Tax on Economic Growth in India

Abstract

Tax is one of the most important sources of revenue to the Government and at the same time one of the deciding parameters for economic growth. Whereas direct tax impacts directly the disposable income, the indirect tax impacts the prices of goods and services in the market. The basic objective of this article is to evaluate the impact of both direct and indirect taxes on economic growth of India. A country's standard of living is illustrated by per capita income. The country with higher per capita income is known for its economic progress. E-Filing of returns, GST file, rectifications, processing status and refunds for returns are the examples of emergence of technology in collection of taxes.