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
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