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Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...

Sound tax system

Sound Tax System
Both theory and practice of public finance tells that sound tax system has following features.
a)Combination of tax :A good tax system does not depend too much on direct or indirect taxes alone. It has judicious combination of both.An important Canon of taxation is that tax system must involve equal marginal sacrifice from all the sections of the society.
b) Productivity:A good tax system is that which brings adequate income to government with as few taxes as possible. .It is better to concentrate on limited number of taxes which are productive and which don't have any adverse effect on the will to save or invest.
c) Elasticity:A good tax system must be elastic in the sense that with changes in tax rates,tax revenue just also change proportionately. The overall tax system must be fairly elastic so as to meet the rising needs of revenue.
d) Buoyancy:A good tax system must also be buoyant in the sense that as national income rises,the tax revenue just also rise accordingly. In developed countries,the tax revenue rise with the economic growth rate because their tax system has the required buoyancy.
e)Progressively: A progressive tax system puts more and more burden on richer groups as their income rise.A government which is committed to bring about a socialistic Pattern of society must have good number of progressive tax.
f) Efficiency:A tax system is efficient if the overall costs of collection of taxes are not above a particular percentage of revenue. If the tax collection machinery is corrupt or tax laws are complex,the costs of collection are unusually high making tax system inefficient. It just be organized on systematic principles of public finance.
g)Sectoral balance :A good tax system must have Sectoral balance of revenue mobilisation.All sectors must contribute their due in tax revenue.
h)A good tax system should conform to Canons if taxation. It should have qualities if equality,convenience , productivity,elasticity ,diversity ,variety .
i)It should ensure maximum social advantage.
j)It should be universal in the sense that persons in sane financial positions should be treated in same way.
k)It should be chosen so as to minimise interference woth economic decision in otherwise efficient markets .such interference impose excess burden.
l)The tax system should permit fair an non arbitrary administration and it should be understandable to tax payer.
M)A good tax system should be balanced. It should not rely in single tax but should have healthy combination of various types of taxes.
n)Taxes should also gravitate fiscal policy of the country to achieve objectives if redistribution of income,stabilisation of economy and economic growth.
o)A good tax system should aim at accelerating economic development by providing incentives for work,save and invest.
p)It should also take into consideration the problems of tax payers.

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