Concept Of Tax: An Overview

The Directive Principles of State Policy, enshrined in Part IV of the Indian Constitution articulates that India is a welfare state. A welfare state is a form of government in which the state protects and promotes the economic and social well-being of the citizens, based upon the principles of equal opportunity, equitable distribution of wealth, and public responsibility of security of all citizens.

For this very purpose government needs funds and has to levy taxes on their (Indian) citizens, which are then utilized to deliver various general services like protection forces for the safety of their people or undertake such projects which will boost the economy of the country and raise the standard of living of its citizens etc. Thus, taxes are an essential part of any nation and the authority to collect tax is sole with the government of a nation in India this authority is divided between the center and the state government by the Indian constitution.