Question

Which one of the following has the largest contribution to the Gross Tax Revenue of Government of India 2019-20 (BE)?
1. Goods and Services Tax
2. Corporation Tax
3. Customs
4. Union Excise Duties

Answer 1

Correct Answer - Option 2 : Corporation Tax

The correct answer is Corporation Tax.

• Corporation Tax has the largest contribution to the Gross Tax Revenue of Government of India 2019-20 (BE).
• For every rupee in the government coffer, 68 paise will come from direct and indirect taxes.
• While states' share of taxes and duties is the single-largest expense head accounting for 23 per cent of total spending.
• According to the Budget for 2019-20 Goods and Services Tax collections will contribute 19 paise in every rupee revenue.
• Corporation tax is the single largest source of income.

• Some Important data from Budget 2021-22-
  • The collections from taxes on companies are expected to be Rs 5,47,000 crore in 2021-22, marginally lower (1%) than 2019-20.
  • The collections from income tax are expected to record an annual increase of 7% in 2021-22 to Rs 5,61,000 crore.
  • The disinvestment target for 2021-22 is Rs 1,75,000 crore.  This target is 3.5 times higher than the disinvestment of Rs 50,304 crore in 2019-20.