Journal Press India^®

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This study aims to explore the nexus between taxation and macroeconomic variables, specifically focusing on their impact on India's GDP from the fiscal year 2004-05 to 2022-23. The methodology involves descriptive analysis to assess data normality, correlation analysis to examine relationships between dependent and independent variables, and linear regression to evaluate the outcomes and validate hypotheses. The findings reveal significant influences of two independent variables on GDP: fiscal deficit exhibits a Positive relationship, while personal tax demonstrates a strong positive correlation. Both hypotheses are rejected due to the substantial effects on GDP. The study recommends policy measures to broaden the tax base, suggesting avenues for tax base expansion to enhance revenue generation, and advocates for increased emphasis on personal tax revenue to mitigate fiscal deficit.

Keywords

Taxation, Direct tax, GDP, Fiscal deficit, Macro-economic, Personal tax, corporate tax, other direct tax

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