Journal Press India^®

It gives me pleasure to introduce yet another issue of VISION to our readers which touches upon some pertinent aspects of the Indian tax system. The lead article discusses the importance of income tax for a country and the various issues that the fiscal authorities need to resolve to make it compatible with the socio-economic objectives of government policy. The paper gives suggestions relevant for designing and reshaping a suitable income tax system. In the light of an unprecedented rise in tax litigation in India involving large sums of money, the article on ‘Tax controversies and litigation in India’ looks at the various types of tax litigation and its impact on tax payers and investors. It also suggests measures that can be undertaken to reduce the extent of controversies and litigation and speed up the process of resolution.

This issue also covers articles related to the evolution, reforms and present structure of some important indirect taxes such as the excise and customs duties. These papers discuss the direction of reforms, the problems created by exemptions and concessions and the need to use these taxes as an effective tool of desired economic change. In the light of the increasing role of service sector in India, the paper on ‘Taxation of services in India’ examines the economic role of service tax, its revenue significance and the administrative costs associated with such a tax. This issue also covers other interesting areas such as computation of tax buoyancy and elasticity and the expected role of the proposed Direct Tax Code.

A section on ‘Documentation’ has been introduced in this issue whereby the chosen theme is ‘White Paper on Black Money’. Black money and tax evasion are eating into the social and moral fabric of Indian society. The success of an inclusive growth strategy critically hinges on the capacity of society to root out the evil of corruption and black money from its very foundations. In recent years, the issue of corruption and black money has come in the forefront after a series of financial scandals. Members of Parliament, the Supreme Court of India and the public at large have unequivocally expressed concern on the issue, particularly after some reports suggested enormous estimates of such unaccounted wealth being held abroad. After uproar in Parliament, Government of India came out with a White Paper on Black Money in May 2012. The White Paper presented the different facets of black money and its complex relationship with policy and administrative regime in the country. It also reflected upon the policy options and strategies that the Government had been pursuing to address the issue of black money and corruption in public life.

Dr. M. M. Sury

Editor-in-chief