TAX EXEMPTIONS IN INDIA: A CRITICAL REVIEW OF REFORM IMPERATIVES AND EMERGING CHALLENGES

This paper examines tax exemptions in India with particular emphasis on the
need for reform and the challenges associated with their implementation. Tax
exemptions constitute an important aspect of the Indian taxation system and
warrant careful analysis, as they contribute to social welfare, promote
economic development, and provide support to priority sectors such as
education, agriculture, and charitable institutions. Nevertheless, the misuse of
these exemptions has led to significant revenue leakage, increased tax
avoidance, and disparities in tax treatment among taxpayers. The study
explores the concept of tax exemptions in India by evaluating their socioeconomic
justification, identifying emerging issues, and underscoring the
necessity for systematic reforms. By integrating legal provisions with practical
experiences, the paper offers recommendations aimed at creating a fairer,
more transparent, and efficient tax exemption framework that can better serve
broader societal interests.