Quick Summary
Before talking about the evolution of taxation systems over the years, let us first understand what tax is. It is defined as a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expendit
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member? Login here for an ad-free experience.
FAQ :
The origins of taxes in India can be traced back to ancient texts such as the 'Manusmriti' and Kautilya's 'Arthashastra,' which detailed elaborate tax systems.
In ancient times, taxes were typically collected as a portion of land produce (around 17%) and from traders (around 20%), alongside other forms like octroi and customs.
During the British era, the East India Company and later the British Crown imposed heavy land taxes, altered traditional systems, and used tax revenue to benefit Britain, often causing hardship to Indian farmers.
The first income tax in India was introduced in 1860 by James Wilson, dividing income into four schedules and taxing various sources like land property, professions, securities, and salaries.
The Goods and Services Tax (GST), introduced in 2017, aimed to create a more streamlined, uniform, and efficient taxation system by replacing the VAT system and subsuming 17 other taxes, eliminating issues like the cascading effect and complex compliance.
Currently, the Income Tax Act follows two tax regimes: the default and the old tax regime, offering taxpayers flexibility to choose the one that best suits their financial situation.
CAclubindia
