Contents: Preface. 1. Tax policy and economic growth. 2. Issues in designing an income tax system. 3. Economics of tax incentives. 4. Indian income tax in historical perspective. 5. Tax incentives in India. 6. Tax incentives in selected developed and developing countries. 7. A comparative study of tax incentives in India and selected developed and developing countries. 8. International double taxation and relief. 9. Summary and conclusion. Bibliography. Index.
"Almost all tax systems incorporate provisions which exclude certain items and deduct others from the tax base. These provisions may take the form of exemptions, deductions, allowances, and tax credits. Tax incentives (or tax preferences) reduce the amount of tax which would otherwise be payable by a taxable entity. Broadly speaking, items which erode the normally accepted base of a tax may be treated as tax incentives.
In India, the basic purpose of tax incentives is to motivate the taxpayers to save and invest more, particularly in rural and backward areas of the country. This book describes and critically evaluates the policy of liberal income tax exemptions and concessions to accelerate the pace of economic growth in India. It examines various theoretical issues related to the operation of tax incentives. It provides an overview of the present system of income tax incentives in India. Drawing on the experience of other countries, an attempt has been made to evaluate the system of tax incentives in India. The countries considered for comparative study are: UK, USA, France, Japan, Singapore, Malaysia and Bangladesh." (jacket)