Taxes in India

Taxes are the most significant source of income for the government and deployed for the development of the nation. The government can’t levy any tax unless passed as a law.

What is a tax?

A tax is a compulsory contribution by the citizens to the state exchequer. The state government levies taxes on people’s income, business profits, cost of goods & services, and transactions. The governments use this revenue for meeting the expenditure of defence forces, maintenance of law & order, payment of salaries to government employees, provision of services such as education, healthcare, roads, and transports.

Taxes in India are prominently levied by the central and the state governments. However, some local authorities, such as the municipal corporation also collect taxes.