Samyukta P Menon & Ashwathi KP, BA. LLB (Hons), National University of Advanced Legal Studies (NUALS)
ABSTRACT
Every nation's economic prosperity is largely influenced by the tax system it has put in place. Taxation is the government's main source of income. The economy of a nation benefits from a tax structure that makes commercial operations straightforward and prevents tax avoidance. Although India's tax structure has undergone multiple adjustments, it is still far from being the ideal one. Numerous problems, including tax evasion, reliance on indirect taxes, the growth of a parallel economy, and the use of black money, suggest that the Indian tax system will need to be significantly changed in the future in order to solve all of these problems. There is a need to assess the development of India's taxation system. Hence, this research paper is an attempt to study the evolution of the taxation regime and analyse the current tax structure in India and recent reforms undertaken. Our goal is to provide the readers with adequate knowledge of how the taxation system works in India, its importance and method of legal protection.
In this paper, we have tried to introduce the concept of taxation and its importance to the readers. How the concept evolved and what are its provisions in the Constitution? The scheme of taxation in India is also discussed. Under it, types of taxes are also explained. The recent changes and an analysis is also provided at the end of the paper.
Keywords: Direct taxes, Indirect taxes, Tax structure, Tax rate, Consolidated Fund of India, Income tax, Surcharge, Cess, Goods and Services tax, Taxation, Cascading effect, Input tax credit.
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