Tax policy and tax administration mutually affect each other. An efficient tax administration is a prerequisite for the successful implementation of tax policy. Income Tax Department in India administers direct tax laws. On the other hand, tax professionals play an important role in the implementation of income tax law of the country. The present study has been carried out with the objective of analyzing the perception of tax professionals with respect to some selected parameters, viz., completion of assessments, unreasonable delay in refunds, physical environment prevalent in income tax offices and quality of services provided by income tax administration. The universe of present study comprises of tax professionals, i.e., chartered accountants practising in Punjab (India). A sample of 250 respondents has been taken by selecting 50 respondents from Chandigarh (L1), Patiala (L2), Ludhiana (L3), Jalandhar (L4) and Amritsar (L5) each. The primary data was collected with the help of a well-structured questionnaire. The analysis of data collected was carried out by using simple frequencies, percentages, average weighted score, chi-square test, Kendall’s coefficient of concordance, etc. The study offers a few suggestions for improving income tax administration in India.

Tax policy and tax administration mutually affect each other. A competent and fair tax administration is a prerequisite for implementing tax policy in the true spirit and for achieving the objectives of taxation. Income Tax Department in India administers direct tax laws with staff strength of around 59,000, under the control and supervision of Central Board of Direct Taxes (CBDT). The department is engaged in the tasks of educating and assisting taxpayers in filing tax returns, assessing tax liability, demanding pending taxes, penalizing dishonest taxpayers and disposing of tax disputes. The role of this department in the tax system of India is rapidly increasing as the share of direct taxes in the revenue of the country has registered a steady increase over the past decade. On the other hand, tax professionals play an important role in the implementation of the income tax law of the country. They help the taxpayers in efficient management of tax affairs and discharging their tax obligations. They are well aware of the weaknesses of tax administration and problems faced by taxpayers. So, they can be helpful in understanding the various aspects of income tax administration.

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