The tax structure of India has undergone various reforms over the years, contributing towards increasedtax collection. The present paper discusses history of reforms and trend in revenue from personal taxes. It investigates the relationship of Personal Income Taxes with GDP, income wise trend of returns under different heads, trend in number of total tax payers (Personal Income Tax), the range of income under which they file tax returns (Salary and Business heads), and the heads under which they pay tax. The result shows a strong degree of positive correlation between Personal Income Taxes and GDP (significant at 0.01 level). The authors conclude there is still need for tax reforms like expansion of the tax base, inclusion of agriculture and informal sector under tax ambit, providing more concessions to lower and middle-income class assesses and having a tighter tax administrative machinery. The authors also suggest compulsory tax education programmes so that compliance cost of filing returns is reduced and post-tax income increases in the hands of tax payers.

KEYWORDS: Personal Income Taxes, Tax Reforms, Tax Collection, ITR.