The system of taxation imposes levies on the individuals within
the territorial jurisdiction of the taxing authority allocated with
the said task. Taxes are the largest source of income for the
government facilitating it to uplift the country by the Central and
State Governments along with local authorities like municipal
corporations. These contributions of the citizens in the form of
tax revenue enable the overall socio-economic development of the
nation in terms of infrastructure, education, healthcare and
medical facilities, industrial advancement, agricultural growth,
employment generation, etc.
The Indian tax regime is divided into direct and indirect taxes.
While direct taxes are levied on individuals and corporate entities
and cannot be transferred to others, indirect taxes on the other
hand are not directly paid to the government authorities but are
levied on goods and services and collected by intermediaries.
