“The growth rate of direct taxes in the financial years 2016-17 and 2017-18 has been significant. We ended the last year with a growth of 12.6% in direct taxes and in the current year, the growth in direct taxes up to January 15, 2018 is 18.7%,” he said. The average buoyancy in personal income tax of 7 years preceding these two years comes to 1.1, he said. In simple terms tax buoyancy of 1.1 means that if nominal GDP growth rate of the country is 10%, the growth rate of personal income tax is 11%, he said. However, he said, the buoyancy in personal income tax for financial years 2016-17 and 2017-18 (RE) is 1.95 and 2.11 respectively.

Source: Hindustan Times February 01, 2018 09:45 UTC