AIR 212 · CSE 2025 · GS3 · 62 pages

Yashvardhan Singh: GS3 answer copy

20 answers by Yashvardhan Singh, as written in the test. Each question opens a page with how other toppers answered it.

The questions

The answers

Question 1 · 10 marks · 115 words written

How far do you think the recent proposals to reform India's tax structure will help in improving India's tax buoyancy and base?

Opening

In the recent budget, Finance minister announced [some] tax reforms, one increasing exemptable income upto ₹12 lakhs per annum.

Body · points and prose

Diagram
- Recent Proposals - Upto ₹12 lakh income untaxable for service class - ₹50,000 deductions - Rationalisation of Tax slabs

Improving Tax Buoyancy and base

(1) Better reporting of income and filing ITR → only 7 crore people file ITR in India

(2) reduction in Tax avoidance and evasion by micro & small enterprises owners

(3) Improved tax collection in long-run → due to rationalisation of slabs

(4) Simplifying tax laws will encourage citizens in reporting their income

(5) Formalisation of economy → Improved ITR filing

Diagram
* Economic development & growth * Better Tax revenue collection * Formalisation of Economy * Digitisation and boost to economy
Diagram
* Challenges Persist * Huge black economy existing in India * Tax complexity * High no. of deductions & provisions leading to tax avoidance.

Close · a way forward

India must reform its tax laws on the similar line of corporate tax reforms which led to double tax revenue to ₹10 lakh crore within 8 years of reforms.