India's taxation system includes direct taxes, like income and corporate taxes, and indirect taxes, primarily the Goods and Services Tax (GST), which replaces multiple previous taxes. The legal framework consists of acts such as the Income Tax Act, GST Act, and Customs Act, with systems like PAN and Aadhaar linking ensuring tax compliance.
Recent reforms, including faceless assessments and reduced corporate tax rates, aim to reduce corruption and encourage investments. The introduction of a digital tax on foreign digital services and ongoing GST simplifications further enhance the system's efficiency.
Digital tools and AI are improving transparency and curbing tax evasion, making India's tax system more efficient. Ongoing reforms and global integration help foster economic growth while ensuring compliance and offering exemptions.
