Progressivity In The Indian Income Tax System: Evaluating Fairness And Distributional Impacts

Apurv Yash & Dr. Rekha Verma, Amity Law School, Noida

ABSTRACT

This research paper delves into the concept of progressive taxation within the Indian income tax system, examining its fairness and distributional impacts. Grounded in theoretical frameworks, empirical studies, and historical perspectives, the paper examines the rationale behind progressive taxation, its implementation, and its implications for income distribution, economic growth, and social welfare. Drawing from constitutional mandates and judicial pronouncements, the paper evaluates the fairness of progressive taxation and its alignment with principles of equity and social justice. It also highlights the distributional impacts of progressive taxation, emphasizing its role in narrowing income inequality and promoting economic stability. However, the paper acknowledges challenges in the implementation of progressive taxation, including concerns about disincentivizing entrepreneurship and tax evasion. It advocates for moderate tax progressivity while emphasizing the importance of robust enforcement mechanisms and transparency in tax administration. Overall, the paper underscores the pivotal role of progressive taxation in fostering economic equity, social justice, and inclusive development in India.