Index IntroductionHistory of taxationTypes of taxesDirect taxesIndirect taxesIntroductionThe most important source of government revenue is taxes. And the act of imposing a tax is called taxation. Tax collection is an administrative assessment on property valuation, trade, deceased inheritance, licenses granting a privilege, or potentially a wage, and obligations on imports from remote nations are called taxation. In a corporate sense it concerns 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 Shouldn't Be Banned"? Get an Original Essay Expenses are normally separated into two main classes: direct and indirect. As a rule, coordinated expenses are those noted on wages, land or real property, and individual property, which are paid directly to the legislator; although indirect duties are assessed against consumable goods, such as items or services, collected by an intermediary, such as a retailer. The tax affects income to define residency status. The tax rate is different for individuals or non-individuals. History of Taxation Taxes are not collected recently but were also collected in ancient India. In ancient India the mau smriti, the arthshastras of kautilya, dealt with the tax system. “It was only for the good of his subjects that he collected taxes from them, just as the sun draws moisture from the earth to return it a thousandfold” this definition of tax is given by the kalidas. According to manu smriti, the king should organize the accumulation of taxes in such a way that the citizen does not feel the need to reimburse the regulatory expenses. In this case the merchants and craftsmen would have to pay 1/5 of their profit in terms of gold or silver, while the farmers would have to pay 1/6, 1/8 and 1/10 of their products depending on the circumstances. According to arthshastra, the taxes imposed were particular and there was no degree of intervention. The expense collectors have decided the timing of each installment, and now it is the right time, the way and the amount that are all pre-decided. The land rent is set at 1/6 of their product. Import duties on foreign goods amounted to 20% of their value. Likewise, tolls, road tax, ferry fares and other taxes have all been fixed. During war or any emergencies such as floods, famines etc. your tax amount may increase. Kautilya's concept of taxation emphasizes equality and justice in taxation. Types of Taxes Direct Taxes A direct tax is that tax the burden of which is borne by the same person on whom it is levied. The ultimate burden of taxation falls on the person on whom the tax is levied. It is based on the person's income and assets. Direct tax examples are: Please note: This is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Corporate Tax: It is a direct tax imposed on the net income of the company. Both private and public companies in India, under the Company Act, 1956, are liable to pay corporate tax. Income Tax: It is a tax imposed on public income or any institution called income tax. This is an annual charge required on both earned wages (compensation, rates, commissions) and unearned wages (profits, bonuses, rent). Despite financing a government's activities, dynamic wage taxation aims to distribute wealth even more equitably among the population.