Decoding History of Taxation

 Whenever we talk about Tax many peoples feel uneasy .Most of peoples afraid to taxes which is happens due to their limited knowledge about tax.I founded it pretty odd whenever someone try to escape or try to save their tax amounts. Most of the times peoples feel tax is very unnecessary things.  so in this articles lets find out how and where  tax  system invented -

The meaning of tax is "estimate" and the concept of tax in has been force during the time of Manu the first law giver. Manu describe Tax in Manu Samriti and described the various ways to impose the tax over traders and artists. There also a different section on agriculture based income. During those times Taxes were given in Gold & Silver. In Shrimad Bhagvat we also can found concept of tax.

  Chanakya's Arthshtra - Chanakya was an ancient teacher ,philosopher, economist, and royal advisor. He was very wise and helped Chandragupta to established a powerful empire. Chanakya was consider a pioneer in economics and he also helped Chandragupta to stable his kingdom financially and introduced the new tax systems and administration.Arthshtra which was written by chanakya deals with tax administration , fiscal policy, King's duty and various other topics. Kosho moolo dhana which means "Revenue is the Backbone" also stated that how much Chanakya gives important to revenue. Chanakya widely known as a great thinker and cleaver diplomat.Chanakya mention various tax and duties in the arthshtra and these tax was imposed on agriculture produce trades,tolls ,and custom duties.

     After Chanakya plenty other kings also add some new laws and mostly laws deals with land revenues because agriculture was main source to generate revenues and also it was the primary profession of the peoples.Land revenue settlement was widely important during Mughal Empire and First Sher Shah Suri organised Land settlement after that Raja Todar mal under King Akbar introduce new land system which is still implement in India.

Type of Tax - In modern time there are two type of tax - 1) Direct Tax 2) Indirect Tax 

    1) Direct Tax - Direct tax are the taxes which you pay directly to government.These tax are directly impose on an individual and it is liability of that person to pay these tax before mentioned dates.Direct tax impose on the income and profit of the person who pay it. Chanakya's doctrine of taxation based on equity and justice so it means that the rich person had to pay more tax compared to poor. This concept of Chanakya also impose in direct taxes so direct taxes impose on total income of individual so individual with higher income pays more taxes rather then less income. Some example of direct taxes are - 1) Income Tax  2) Capital Gain Tax 3) Wealth Tax 

    2) Indirect Tax - Indirect tax is directly not impose on taxpayer or individual rather than it is mostly impose on goods and services which result in their high prices.Mostly indirect taxes like GST or Excise Duty are the taxes which are imposed on manufacturing of goods or supply of goods that paid by individual or businesses. Some example of Indirect Taxes are - 1) GST 2) Excise Duty 3) VAT 4) Service Tax