TAXATION OF FAMILY INCOME UNDER INDIAN TAXATION LAWS A NEW PERSPECTIVE

Since the monarchy pattern of ruling the state to the republic era, one aspect is common i.e taxation. The revenue required for funding the public services and maintaining law and order, various types of taxes are imposed on citizens and organisations by the competent authority. In India, the taxation of income is the exclusive power of Central Government and The Income Tax Act 1961 is the governing Act for the taxation matter. The present paper is conceptual in nature. The author wants to propose a new scheme of taxation of family income. As per the authors proposal the combine income of the family will be charged to tax instead of charging individuals income separately. The authors has given the reference of few prevailing schemes to support his claim. Before writing the conclusion of the paper, the positive and negative aspects of the new proposal are also discussed. The idea behind the new proposal is to condense the disparity in disposal income of individual and family income.