Browsing by Author "Juneja, Vipin"

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Where do my tax rupees go? : a study to understand the effect of information provisioning on tax morale in case of India
(National Law School of India University, Bangalore, 2023-10-18) Juneja, Vipin; Dr. Sudipa Sarkar, - Supervisor
Tax evasion is a widely observed but inadequately understood phenomenon on a global scale. Governments have struggled with this issue since the inception of taxes. According to economic theory, taxpayers are expected to choose between paying taxes on time or evading them based on factors such as tax rates, penalties for non-compliance, and the likelihood of audits. However, some argue that these preventive measures fail to fully consider the taxpayer's decision-making process. Modern perspectives suggest that individual taxpayers make this choice to maximise their personal benefits, while also considering the societal costs, penalties, and deterrent policies imposed by the government. Nonetheless, the reasons behind why people ultimately choose to pay taxes instead of evading them remain unclear. Is it a voluntary decision on their part, the result of deterrent measures implemented by different levels of government, or the societal pressures they face? Additionally, what role do factors such as education level, employment type, gender, age, and income bracket play in tax compliance? On the other hand, what motivates individuals to resist or evade taxes? Could it be a lack of trust in their governments, the perception of inadequate punishment if caught, or a sense of unfair burden distribution? This research dissertation, titled "Where do my Tax Rupees Go: A Study to Understand the Effect of Information Provisioning on Tax Morale in the Case of India," aims to shed light on these complex issues. By examining the tax compliance behaviour of individuals through the analysis of Stamp Duty on new property purchases and Registration Fees for rent agreements in the National Capital Territory of Delhi, this study seeks to provide answers to the aforementioned questions. Considering recent trends observed in Delhi, which indicate a positive correlation between education expenditure, government advertisements, and total tax collection, this research offers a potential explanation and describes three parallel trends observed in the case of Delhi. In terms of the findings, the research findings shed light on various aspects related to tax morale and compliance. The study conducted in the city revealed an interesting trend regarding women's property ownership, where despite not being the official owners, women showed higher tax compliance. This phenomenon could be attributed to the concept of "shadow ownership" among women. Additionally, the research highlighted the importance of diverse channels for information provisioning, indicating that traditional and unconventional sources should be targeted to raise public awareness effectively. Furthermore, the study emphasized the need for a stronger presence of local governance in citizens' lives to deepen democracy and trust. The research also explored the relationship between education level and tax morale, suggesting that education alone does not necessarily lead to higher awareness or responsibility. Trust in governance was found to have limited influence on tax morale and compliance, emphasizing the complexity of taxpayer-citizen relationships. The study also uncovered the significance of perceptions of equity and fairness in shaping tax compliance behavior. The lack of clarity regarding tax imposition was found to undermine trust and compliance. Lastly, the research challenged the assumption that self employed individuals have a higher tendency to evade taxes compared to salaried individuals. The motivations for tax payment were found to stem from a sense of responsibility as citizens and a desire for recognition. Overall, the findings provide valuable insights into fostering tax morale, compliance, and sustainable development.