Answer-Which correctly explains the primary reason India’s tax-to-GDP ratio and total tax collection...

Option A is wrong corporate tax was actually CUT from 30 to 22 in 2019, yet collections rose. Option D is a budget classification error borrowings are capital receipts, not tax receipts.

Question

Which correctly explains the primary reason India’s tax-to-GDP ratio and total tax collection have been on an improving trend in recent years?

A India increased its peak income tax rate from 30% to 42.74% (including surcharges), directly raising revenue

B Formalisation of the economy through GST, digital payments, improved TDS compliance, and faceless assessments, combined with nominal GDP growth buoyancy, have together raised tax collection

C Removal of corporate tax exemptions caused a one-time surge that permanently raised the tax base

D Increased borrowing by the government is classified under tax receipts in the Union Budget