Income Distribution through direct taxes in India

Abstract

newlineIn this modern world the growing economic inequality is a concern of each and every country. Each country broadly has some settled objectives like higher growth, better distribution of economic resources and stability. Accordingly they formulated public policies and more so fiscal policies to balance these objectives in a golden proportion. Out of fiscal policies, like tax policy, expenditure policy and debt polity. Govt. of various countries either democratic or command adopts the concepts of justice and welfare of the masses1. The colossal problems of the economic disparity both in within a countries and among the countries has been pervasive. Therefore instrument out of several instruments has been treated everywhere in the world to redressal glaring inequality and poverty, as poverty is the manifestation of economic inequality. In principle direct taxes as a part of fiscal policy has been chosen to achieve this objectives of inequality entatilment2 . So in this work a suitable direct tax structure has been examined for social justice. Often total economic performance does not tally with fairness, social ethics and political norms3 . Tax in general yields revenue to the authority and implicitly inherent redistributing income and wealth to create an eligeterarian orde4 . Endeavour has been made to bridge the gap between the classes are discernible at old level of govt.5 .Our constitution have laid emphasis on social justice, eligetarism, reduction of inequality and abolition of poverty6 . In post independence philosoty we see dream for a just social order7