2. Taxes in ancient India are found in Arthashatra the famous work of Kautilya ( also known as Chankya and Vishnugupta) During this regime taxes were levied both in cash and kind and were collected by local officers Major sources of revenue included land tax, octroi, taxes on liquor shops, gambling houses and on professionals like dancing girls. Just as the Sun extracts water from reservoir and gives it back as shower, so does the ruler extracts tax from his subjects and gives it back to them in the form of prosperity : Kalidasa the Sanskrit Scholar PRE-INDEPENDECE TAX SYSTEM IN INDIA

3. Taxes during Mughal period (Reign of Emperor Akbar and Aurangzeb) Important sources of revenue included land revenue, import and export duties and Jizya or (Zazia) Rate of Zazia during the rule of Aurangzeb PRE-INDEPENDECE TAX SYSTEM IN INDIA Income Level Per Year Rate of Zazia More than Rs.2500 48 dirhams ( or 13 rupees) Between 50 and 2500 rupees 24 dirhams (or 6.5 rupees) Between 53 and 250 rupees 12 dirhams (or 3.25 rupees) Less than 52 rupees Exempted

6. TAX STRUCTURE DEVELOPMENT IN INDIA Taxes within Union Jurisdiction as Enumerated in List I - Central Levy

7. TAX STRUCTURE DEVELOPMENT IN INDIA Taxes within State Jurisdiction as Enumerated in List II - State Levy

11. TAX STRUCTURE DEVELOPMENT IN INDIA Tax – GDP Ratios suggested by the Twelfth Finance Commission for the Year 2009-10 - As % age of GDP Source : Report of the Twelfth Finance Commission (2005-10 ) Chairman - Dr. C. Rangarajan

13. TAX STRUCTURE DEVELOPMENT IN INDIA Direct versus Indirect Taxes : Combined Tax Revenue, Breakdown Direct and Indirect Taxes with Percentage Shares:1950-51 to 2008-09 Source : Rearranged data from Government of India, Ministry of Finance, Indian Public finance Statistics, 2008-09, Table 1.2, calculation of % age on own http://www.finmin.nic.in/reports/index.html