Taxation Law. Historical Perspectives and Details.

1. By: DEEPAK R. TONGLI
Advocate and Guest Faculty of Law

2. Derivation of “TAX”
• The word ‘tax’ first appeared in the English language only in the 14th
century.
• It is derived from the Latin word “taxare” which means ‘to
assess’
• It is also derived from the word ‘taxo’ which means estimate

3. LAY MAN’S PERSPECTIVE
In Common Man’s perspective, Tax is also termed as;
• LEVY
• CHARGE
• PAYMENT TO THE GOVERNMENT
• IMPOSITION
• EXCISE
• TOLL

4. DEFINITION
• MERRIAM WEBSTER
• a charge, usually of money imposed by authority, on
persons or property for public purposes
• CAMBRIDGE
• (an amount of) money paid to the government that
is based on your income or the cost of goods or
services you have bought.

5. ORIGIN OF TAX
• Originated nearly around 2000 years ago
• Luke 2:1 reads: “And it came to pass in those
days, that there went out a decree from
Caesar that all the world should be taxed.”
• It is estimated to have been declared
after the Census of Quirines (stated that
every person has to be registered) in the
year 6 CE.

6. THE PURPOSE OF TAXING-Earlier Times
Preparation of WARS
Payment of SALARIES
Provincial ADMINISTRATION
Royal Treasury RESERVES

7. THE PURPOSE OF TAXING-At Present
Infrastructure Development Social Welfare Schemes
Education Programs
Health & Welfare
Poverty Alleviation
Facing Natural Calamities
National Security & Wars
Salary to Govt. Servants

8. ORIGIN & GROWTH
An Overview of Historical
Perspective

9. THE GENESIS
• The first known system of taxation was in Ancient
Egypt in the years 3000-2800 BC in the First
Dynasty of Egypt of the Old Kingdom of Egypt.
• It was classified into two types – Corvee and Tithe
• Corvee is a form of unpaid labor, intermittent in
nature and which lasts for a limited period of time
ie. For a certain number of days in a year
• Tithe is 1/10th of something which is generally paid
to any religious organization

10. THE PERSIAN TREND
• A regulated and sustainable tax system was
introduced by Darius I the Great in the Persian
Empire in 500 BC
• The system of taxation was specially designed
by the different Satray or provincial governor
at their own discretion.
• There would be around 20-30 Satrays in the empire
and they would decide the amount of tax to be
paid.

11. THE ISLAMIC TREND
• Islamic rulers imposed these two types of taxes-
ZAKAT & JIZYA
• Zakat is the form of alms-giving treated as a
religious obligation or tax which in Islamic ranking is
next after prayer in importance
• Jizya is the per capita yearly taxation historically
levied in the form of a financial charge on non-
resident Muslim subjects of a state governed by
Islamic law in order to fund public expenditure
instead of Zakat paid by the resident Muslims.

12. THE CHRISTIAN TREND
• BOOK OF ST LUKE CHAPTER 2:1

13. HISTORY OF
TAXATION IN
INDIA

14. MANUSMRITI
• In India, the system of direct taxation as it is known
today has been in force in one form or another even
from ancient times.
• MANU SMRITI & ARTHASHASTRA
• Manu, the lawgiver laid down that traders and artisans
should pay 1/5th of profits in silver and gold
• Agriculturists were to pay 1/6th, 1/8th or 1/10th of their
produce depending on their circumstances
• War loans were raised during emergencies

15. THE GREAT ARTHASHASTRA
 Arthashastra mentioned that each tax was specific
and there was no scope for arbitration.
• The land revenue was fixed at 1/6 share of the
produce
• Import and export duties were determined
on an ad-valorem basis.
• The import duties on foreign goods were roughly 20%
of their value.
• Similarly, tolls, road cess, ferry charges, and other
levies were all fixed.

16. VARTHANAM AND DVARODAYA
LEVY COLLECTED ON
ALL IMPORTS OF
FOREIGN GOODS

17. YATRAVETANA
LEVIED ON PILGRIMS
& RELIGIOUS YATRAS

18. VANIKPATH
INCOME FROM
ROADS AND
TRAFFIC PAID IN
THEFORMOFTOLLS

19. RELIGIOUS TAX - BALI

20. TAX IN CASH FORM - KARA

21. LAND TAX - SITA

22. OTHER FORMS OF TAXES IN ANCIENT INDIA
Construction Tax
VASTUKA
Survey Tax
RAJJU
Police Tax
CHORA RAJJU
Tax on Villages on
Water
KALRAPTA
General tax on
Villages
PINDAKARA
Emergency Tax
PRANAYA
Celebration Tax
UTSANGA
War Tax
SENABHAKTA
Land Tax Paid by
Farmers
BHAGA
Tax on Trade
SHULKA
Tax by Merchants
GULMADEYA

23. CONCLUSION
• Well Organized Taxation System since Ancient India
• Welfare of the Public was a prime Concern
• Manu- King should shower benefits on his people
• Ashokan Inscriptions and Greek Authorities testify about the Welfare Activities of the
Mauryan Empire
• Asoka made Medical facilities for both Men and Animals
• Construction & and maintenance of roads was one of the primary duties of the state
• Maintenance of Royal Dignity
• Social Benefit was a Major Consideration of the Early Indian Economy

25. TYPES OF TAXES IN MODERN TIMES

26. NEXT CLASS
NATURE & AND CHARACTERISTICS OF
DIFFERENT TAXES