Progressive Taxation and Sustainable Development: Role of Income Tax in the Context of Viksit Bharat
Abstract
The vision of Viksit Bharat 2047 outlines India’s transformation into a developed, inclusive, and sustainable economy within the next two decades. Progressive taxation-particularly through income tax-plays a pivotal role in achieving this vision by mobilizing resources, reducing inequality, and financing social and infrastructural development. This paper examines the role of income tax as a fiscal instrument for sustainable development in India, with a focus on its contribution to inclusive growth, equitable wealth distribution, and economic modernization. Using secondary data from government reports, academic studies, the CBDT website, and policy analyses, the study evaluates trends in income tax collection over the past decade and their alignment with national development priorities. The paper argues that strengthening compliance, widening the tax base, and integrating digital governance reforms are essential to enhancing revenue efficiency. Policy recommendations are proposed to optimize income tax structures in ways that support the economic, social, and environmental pillars of Viksit Bharat.