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Introduction The Government takes primary responsibilities for the welfare of its citizens, as in the matters of health, education, employment, infrastructure, social security and other developmental needs. To facilitate these, Government needs revenue. Taxation is the primary source of revenue f
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FAQ :
The government collects taxes to generate revenue for funding public welfare expenditures such as health, education, employment, infrastructure, and social security.
Taxes in India are administered by the Ministry of Finance, Government of India, through two main bodies: the Central Board of Direct Taxes (CBDT) for direct taxes and the Central Board of Indirect Taxes & Customs (CBIC) for indirect taxes.
The two main types of taxes in India are Direct Taxes, where the impact and incidence fall on the same person (e.g., Income Tax), and Indirect Taxes, where the impact and incidence fall on different persons (e.g., GST).
Direct taxes are levied on income and wealth and paid directly by the assessee, while indirect taxes are levied on goods and services, and their burden is typically shifted to the final consumer.
Indirect taxes are generally considered regressive because everyone pays the same tax rate on goods and services consumed, regardless of their income level, potentially increasing disparities.
Article 265 of the Constitution states that no tax shall be levied or collected except by the authority of law. Article 246, along with Schedule VII, divides the legislative powers for taxation between the Union and State governments.
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