Public Opinion On The Effects Of Reducing Tax Rates On The Indian Economy

K. Kaviyas* & Mr.Dhinesh**

ABSTRACT

Tax rates in the country determines the rate of people paying tax without evading it. A reduction in the tax rate will bring significant changes in the number of taxpayers paying the tax without trying to evade it. This will ultimately lead to economic development. The aim of this research is to study the effects of reduction in the tax rates in Indian economy. This is a socio-legal research which has collected 200 responses from the general public through circulating a questionnaire online by convenient sampling method. The survey consists of independent variables which include age, gender and occupation and the dependent variables include whether the reduction in tax leads to economic development, tax rate to be decided to not to avoid tax and whether tax evasion leads to economic instability. The results of the study shows that the reduction in tax rate will lead to economic development, the current rate of tax is fine so that people would pay it without evading and the tax evasion would lead to economic instability.

Keywords: Tax rate, reduction, tax evasion, economic development, income tax