Balancing the Scale: India’s Direct Tax System vs. Global Benchmarks

Balancing the Scale: India's Direct Tax System vs. Global Benchmarks

Amisha, Kunal Deb, P Sushmitha Nayak, Sanketh K T, Sanjay Sengupta, Swapnil Kashyap,

Varsha Annasaheb Patil.

Under the Guidance of Dr. Tejaswini S

Department of MBA,

CMS Business School, JAIN (Deemed-to-be University), Bangalore India. 560009

Abstract

India's direct tax regime has a very strong influence in formulating the economy of the country, though in many aspects it is also accused of its ineffectiveness and unevenness against other countries. Through this study, the organizational and working nature of the direct taxation of India compared with international paradigms in reference to mismatching, ineffectiveness, and reform are viewed. By analyzing parameters like the Tax-to-GDP ratio, corporate tax rates, and personal income tax structure, the study gauges their influence on economic growth, foreign direct investment (FDI), and income equity. By making a comparative assessment with tax systems of developed and emerging nations, the paper determines important gaps in India's taxation system and formulates policy suggestions for improving efficiency, equity, and compliance. The research also investigates the contribution of technology to enhance tax collection and minimize evasion. Discoveries indicate that although India's tax-to-GDP ratio is below international standards, strategically tailored reforms can markedly enhance revenue collections and economic stability.