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Symbiosis Institute of Business Management,


Submitted by: Aditya Grover

Akshay Sawant
Deeksha Sachdeva
Khyati Mishra
Siddharth Mahajan

Date of Submission: 06th September -2016


About Indian Taxation System

India being a welfare state follows progressive taxation system. This method has increasing
rates of tax for increasing value or volume on which the tax is being imposed. In laymans
term Tax on people who earns less pays less tax and those who earns more pays higher tax.
So this system classifies income earners into different slabs. This tax system has been slated
because it is believed that this system discourage more earning by the individual to support
low growth and development unintentionally.
Then why did India adopt this system?
On the eve of Independence maximum population of India was under grip of severe poverty.
So there was a need to have such a taxation system which is pro-poor and which will
minimize the income disparity. Therefore by imposing higher taxes on the people who earns
more, government will have more revenue which will be spent on various sectors such as
education, infrastructure, health, etc. which will provide services to each and every one alike.
This is the most popular taxation method in the world and a populist one.

India has a well-developed tax structure with clearly demarcated authority between Central
and State Governments and local bodies.
Central Government levies taxes on income (except tax on agricultural income, which the
State Governments can levy), customs duties, central excise and service tax.
Value Added Tax (VAT), stamp duty, state excise, land revenue and profession tax are levied
by the State Governments.
Local bodies are empowered to levy tax on properties, octroy and for utilities like water
supply, drainage etc.
Indian taxation system has undergone tremendous reforms during the last decade. The tax
rates have been rationalized and tax laws have been simplified resulting in better compliance,

ease of tax payment and better enforcement. The process of rationalization of tax
administration is ongoing in India.
Importance of Paying Tax
For a developing nation like India money is required to perform civil operations and to
administrate the running of the state. This money is generally collected from the citizens of
the state in the name of the tax. So, it becomes virtually impossible for the government to run
without the tax. Further the importance of tax collection can be described as follows:

Raising revenue: The primary purpose of taxes is to raise the revenue for the
government. The modern government has to perform several functions for the welfare
of the public. The performance of these functions involves substantial amount of
public expenditure.

Regulation of consumption and production: Taxes are sometimes used to

discourage the consumption ad production of unnecessary or harmful goods like
liquor, tobacco etc. This also results in the diversion of production form luxury goods
to necessities.

Encouraging domestic industries: Taxes in the form of custom duties are used to
reduce the import of certain goods that are domestically available and thereby the
domestic industries for the production of these goods. For example, high customs
duties on goods like TV, AC etc. switch over the demand for the foreign brands.

Stimulating investments: The instrument of taxation can also be used in the

stimulating investment of the private sector. This can be done by providing various
tax-incentives in the form of tax-holidays, investment allowance and lower profits.

Reducing income inequalities: Taxation policy of the government is often used in

reducing the income inequalities of incomes and assets. Inequality of income can be
reduced by the system of progressive taxation under which the rich people are
required to pay much more taxes than poor. The taxes collected form the rich can

further be utilized for providing social services which benefit the low income groups.

Promoting economic growth: Taxation policy can also be used for promoting
economic development of the country. The revenue collected by the government can
be used in promoting development of industries and agriculture. The government ca
also use these funds in building a better infrastructure like transport and
communication, power etc.

Development of backward regions: Tax system can be used in ensuring the

development of backward regions. Entrepreneurs can be motivated to set up their
industries in the backward regions by providing tax concessions to them.

Ensuring price stability: Direct taxes like income tax can be used to ensure price
stability. These taxes reduce the disposable income of individuals and thereby reduce
their purchasing power. This results in the fall in aggregate demand in the economy
and thereby reducing demand-pull inflation.

Types of Taxes


Direct taxes: Direct tax is one that is imposed on the income and property of a person.
Thus, income tax, corporation tax, property tax, death tax, capital gains tax etc. are all


the direct taxes.

Indirect Taxes: a tax levied on goods and services rather than on income or profits.

Taxation slabs for Individuals for the FY2015-16:

1. Individual resident aged below 60 year.

Income Slabs

Tax Rates

Where the taxable income

does not exceed Rs. 2,


Where the taxable income

exceeds Rs.2,50,000/- but
does not exceed

10% of amount by which the taxable income exceeds

Rs. 2,50,000/-.Less ( in case of Resident Individuals
only ) : Tax Credit u/s 87A 10% of taxable income up
to a maximum of Rs. 2000/-

Where the taxable income

exceeds Rs.5, 00,000/- but
does not exceed Rs.10,

Rs. 25,000/- + 20% of the amount by which the taxable

income exceeds Rs. 5, 00,000/-.

Where the taxable income

exceeds Rs.10, 00,000/-.

Rs. 125,000/- + 30% of the amount by which the

taxable income exceeds Rs. 10,00,000/-

2. Individual resident who is of the age of 60 years or more but below the age of 80 years
at any time during the previous year
Income Slabs

Tax Rates


Where the taxable

income does not exceed
Rs. 3,00,000/-



Where the taxable

income exceeds
Rs. 3,00,000/- but does
not exceed
Rs. 5,00,000/-

10% of the amount by which the taxable income

exceeds Rs. 300,000/-.Less: Tax Credit u/s 87A
10% of taxable income up to a maximum of Rs.


Where the taxable

income exceeds Rs.
5,00,000/- but does not
exceed Rs. 10,00,000/-

Rs. 20,000/- + 20% of the amount by which the

taxable income exceeds Rs. 5,00,000/-


Where the taxable

income exceeds Rs.

Rs. 120,000/- + 30% of the amount by which the

taxable income exceeds Rs. 10, 00,000/-.

3. Individual resident who is of the age of 80 years or more at any time during the
previous year
Income Slabs

Tax Rates


Where the taxable

income does not
exceed Rs. 5,00,000/-



Where the taxable

income exceeds Rs.
5,00,000/- but does not
exceed Rs. 10,00,000/-

20% of the amount by which the taxable income

exceeds Rs. 5, 00,000/-.


Where the taxable

income exceeds Rs.

Rs. 100,000/- + 30% of the amount by which the

taxable income exceeds Rs. 10,00,000/-

10,00,000/Amounts invested in certain investments like Employee Provident Fund, Public Provident
Fund, Tax saving Fixed Deposits, are also eligible for deduction under section 80C up to
Rs.1, 50,000 per year.
About the Pay Tax Campaign:
The campaign is focussed to create awareness amongst the masses primarily the youth and
earning population to come up and pay taxes for the greater good of the nation. The idea is
not to focus on promotion of any particular tax type but to promote the importance of paying

Newspaper Campaign (Including 4 Cities): 16 Crore
Radio Campaign: 1 Crore
Television: 30 Crore
Social Media: 1 Crore
Hoardings: 2 Crore

The message is:
Say NO to tax Evasion; File your Tax Return Now
Desh ke vikaas ki zimmedaari lein; aaj hi apna tax bharein
Rooting for taxes is never an easy thing because most people question that concept of giving
away part of their earning to a government but the fact is that taxes are an important source of
income for the government. This is the money that is invested in various development
projects that are meant to improve the company's situation. But the country has been facing a
massive problem with tax evasion. People who should be paying taxes have found ways not
to pay them and, as a result, it may be said that the income of the country has been suffering.
For the last fiscal the revenue gap reached around Rs. 41,000 Crore.

People avoid taxes by various means and by this campaign the message is to create awareness
and make the masses realise about the importance of paying taxes as every penny counts for
the development of the nation. It also aims at creating a sense of fear by communicating that
tax evaders can lose their respect if caught and are a blot on society.
The other part of the message tries to create a sense of ownership amongst the masses by
provoking the notion of being the agents of development. The whole idea is to make
everyone responsible for the development of our country and not just keep blaming
government for slower pace of development projects.

Since the message requires mass coverage almost every media is covered. The idea is to
create maximum awareness. Following is the detailed list of media used:
1. Print Media:
a. Hindi and English daily Times of India and Dainik Jagran and
b. Business and Financial Newspapers- Economic Times and Business Standard
c. Magazines : Business Today and India Today

2. Television:
Video advertisement for about 50seconds on:

a. News channels- Aaj Tak and Times Now

b. Entertainment Channel: Star Plus
3. Radio:
All Radio stations
4. Social Media:
Facebook, Instagram and YouTube.
5. Hoardings and Banners:
Highways, shopping malls same ad as print advertisement

The success/failure of this campaign would be measured by the following metrics:

Reach: For checking whether the videos posted on Facebook are getting the reaction
and response that we expected, Reach would be used as a measure. This measure has
been chosen as it tells us the number of people we have been able to hit with the
Likes: Another measure we would use to gage the number of people weve been able
to target positively is the number of likes the posts get on social media. This would be
an indicator of the engagement rate that the post has been able to get from the
Coverage: For print media (newspapers and magazines), we would be focusing on
the coverage of the media concerned in order to calculate the number of people that
would be getting a copy of our message. The number of localities that particular
media is sent to, the reach of the newspaper/magazine.
Number of Copies Sold: The number of copies sold of the newspaper and magazine
would tell us more about the effectiveness of the campaign. Again, for print media,
this would be an appropriate indicator to know the number of people reached.
Television Rating Point: This is specifically for the advertisements being shown on
the television or rather, the TVC. It would aid knowing whether the desired amount of
people are viewing the TVC or not, and also whether there is an improvisation
required in the channels and shows chosen by us in the mid campaign review.
Number of People Tuned-In on Radio: The number of people tuned in to the radio
stations while our advertisement is being played is a factor that we want to take into
consideration to know how successful the execution of the campaign on the radio
platform has been.
Decrease in Number of Tax Defaulters: Lastly, the overall effectiveness of the
campaign can be measured by this factor. Although this may not be solely due to the
campaign or at all, yet it has to be taken into consideration. A decrease in the number
of tax defaulters would indicate the success of the campaign as this is the sole motive
of the campaign.


Paying tax is important as responsible citizens of the country we all shall participate in better
development of the country. Campaign helped in creating awareness amongst rural as well as
urban population. We also understood that it is important to bring in the use of latest media to
promote such awareness campaigns. WhatsApp is one such platform where the message
reaches masses in least cost.
Such campaigns should be more creative and appeal to emotions of the masses to be