What are the objectives of modern tax system?

The primary purpose of taxation is to raise revenue to meet huge public expenditure. Most governmental activities must be financed by taxation. But it is not the only goal. In other words, taxation policy has some non-revenue objectives.

What are the objectives of taxation in modern welfare government?

From the above discussion, it follows that taxation serves the following purposes: (i) To raise revenue for the government (ii) To redistribute income and wealth from the rich to the poor people (iii) To protect domestic industries from foreign competition (iv) To promote social welfare.

What is the objective of Income Tax Act?

The Income Tax Act was enacted in the year 1961 and is the statute under which everything related to taxation is listed. This includes levy, collection, administration and recovery of income tax. The act basically aims to consolidate and amend the rules related to taxation in the country.

What is the philosophy of taxation?

Taxation: Philosophical Perspectives is the first edited collection devoted to addressing philosophical issues relating to tax. Taxes are used by states to fund the provision of public goods and public services, to engage in direct or indirect forms of redistribution, and to mould the behaviour of individual citizens.

What are the various types and objectives of tax planning?

Types of Tax Planning: Purposive tax planning: Planning taxes with a particular objective in mind. Permissive tax planning: Tax planning that is under the framework of law. Long range and Short range tax planning: Planning done at the start and end of a fiscal year respectively.

What are the three main objectives of taxation?

Objectives of Taxation: 1 1. Revenue Aspect: The time honored objective of taxation is to raise revenue. The in­troduction of new tax measures or the strengthening of existing 2 2. Regulatory Objective: 3 3. Taxation as a Means of Regulating the Level of National Income: 4 4. Functional Finance Objective: 5 5. Incentive Objective:

How is taxation an instrument of economic policy?

In other words, taxation policy has some non-revenue objectives. Truly speaking, in the modern world, taxation is used as an instrument of economic policy. It affects the total volume of production, consumption, investment, choice of industrial location and techniques, balance of payments, distribution of income, etc.

Which is a principle of a tax system?

Another principle of taxation suitable for the developing coun­tries is the principle of elasticity of taxation. According to the concept of elasticity of the taxation system, as national income increases as a result of economic growth, the Government revenue from taxes should also increase.