ANALYSIS OF IMPACT OF TAX INCENTIVES ON REVENUE

Abstract

Tax incentives may be described as any incentives that lessen the tax burden in an effort to set off them to make investments particularly initiatives or sectors. They are exceptions to the overall tax regime. It is thus evident that tax incentives/ expenditures are developmental oriented tax concessions aimed to fulfil economic and social goals of the government by influencing the private decision making. The major purpose of tax incentives/expenditures is, however, to raise the aggregate levels of savings and investments and also to attract foreign investors. While reading this topic I came across several research papers from which I came on a conclusion that to maximise gains, tax incentives must be carefully devised and implemented moreover adequate measures should be undertaken to provide favourable business environment in totality. But tax incentives in India are subject to various limitations as well as litigation. For data analysis I have used Hypothesis test to measure the correlation and I have used Power BI for graphical presentation.