4. As the recently released data shows, a narrow tax base remains a major concern in India. What are the possible reasons for such a scenario? In this context, also examine the government efforts to address the issue.

Approach:

♤ Give a brief picture of the narrow tax base in India.

♤ Bring out various reasons for the narrow tax base.

♤ Enumerate and examine various steps taken by government to widen the tax base.