Table of ContentsIntroductionHistory of TaxationTypes of TaxesDirect TaxIndirect TaxIntroductionThe most important source of revenue for the government is taxes. And the act of imposing a tax is called taxation. Tax collection is an administrative assessment of the valuation of property, trade, inheritance of deceased persons, licenses granting a privilege or potentially a salary, and obligations on imports from distant countries are called taxation. It encompasses all the commitments imposed by the legislator on citizens for the administration of the State. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original EssayExpenses are normally separated into two main classes: direct and indirect. As a general rule, coordinated charges are those recorded for wages, land or real estate, as well as individual assets, which are paid directly to the legislative branch; although indirect duties are assessed based on items of use, for example, items or administrations, collected by an intermediary, for example, a retailer. The tax is an impact on income allowing them to define their residence status. The tax rate is different depending on whether it is an individual or a non-individual. History of Taxation Taxes are not collected recently, but they were also collected in ancient India. In ancient India, the mau smriti, the arthshastra of kautilya, concerned the tax system. “It is only for the good of his subjects that he collects taxes from them, just as the sun draws moisture from the earth to restore it a thousand times” this definition of tax is given by the kalidas. According to Manu Smriti, the king had to organize the accumulation of charges in such a way that the citizen did not feel obliged to pay regulatory expenses. In this, traders and artisans would have to pay 1/5 of their profits in gold or silver, while farmers would have to pay 1/6, 1/8 and 1/10 of their produce depending on their circumstances. According to arthshastra, tax imposition was particular and there was no degree of intervention. The expense collectors have decided the timing of each payment, and now it is the right time, manner and amount which are all predetermined. Land income is set at 1/6 of their production. Import duties on foreign goods were 20% of their value. Likewise, tolls, road access, ferry fees and other levies have all been fixed. During war or emergencies like floods, famine, etc., the tax amount may increase. Kautilya's concept of taxation emphasized equality and justice in taxation. Types of Taxes Direct Tax A direct tax is that tax whose burden is borne by the same person on whom it is levied. The ultimate tax liability falls on the person on whom the tax is levied. It is based on the person's income and assets. Examples of direct taxes are: Keep in mind: This is just a sample. Get a personalized document now from our expert writers. Get a Custom Essay Corporate Tax: This is a direct tax imposed on the net income of the business. In India, both private and public companies, under the Companies Act, 1956, are subject to corporate tax. Income Tax: This is a tax imposed on the income of the public or any institute called income tax. This is an annual fee levied on both earned compensation (salary, pay rate, commission) and..