Which one of the following committees was constituted in year 1991 for reforms in tax structure in India?

Correct option is B

The correct answer is (b) Chelliah Committee.
The Chelliah Committee, formally known as the Tax Reforms Committee, was constituted in 1991 under the chairmanship of Dr. Raja J. Chelliah. Its primary purpose was to review and recommend reforms to the tax structure in India. The committee’s recommendations led to significant changes, including the simplification of tax rates, broadening of the tax base, and reduction of exemptions. These reforms were instrumental in modernizing India’s tax system and enhancing efficiency, transparency, and equity within the taxation framework.
Information Booster:
● The Chelliah Committee was instrumental in the shift towards a market-oriented economy by recommending tax reforms in 1991. ● Recommendations included lowering personal and corporate tax rates, improving tax administration, and broadening the tax base. ● The committee’s work laid the groundwork for subsequent reforms, including the introduction of Goods and Services Tax (GST). ● It helped align India's tax system with international standards and fostered a pro-investment environment. ● Its recommendations contributed to fiscal consolidation by increasing revenue and reducing the fiscal deficit. ● The committee emphasized minimizing tax evasion and improving the effectiveness of the tax collection system.
Additional Knowledge:
· (a) Narasimham Committee: Established in 1991 for banking sector reforms, focusing on liberalization and efficiency in the banking system.
· (c) Gadgil Committee: Known for its focus on forest conservation and biodiversity rather than economic or tax reforms.
· (d) Kelkar Committee: Formed in 2002 to suggest tax reforms in direct and indirect taxes, succeeding the Chelliah Committee’s foundational recommendations.