1 http://www.miteshk.webs.com TAXATION
CHAPTER 1: INTRODUCTION
The word tax is derived from a Latin word “Taxare “it means to estimate or value. The term tax to a common man means money paid to the Government out of compulsion without deriving any benefit directly by himself or his family members.
As per taxation tax means statuary payment to be made b the public and imposed by the
Government.
Definition:
As per Prof. Adams:
¾ From the Stand point of the state, a tax is source of derivate revenue
¾ From the point of the citizen, A tax is a coerced payment
¾ From the Administrative point of view, it is a demand for money by state in conformity to establish rules
¾ From the point view of a Theory, a tax is a contribution from the individual for common expenditure
Characteristics of Tax:
1. Tax can be imposed by the Government only
2. Taxes are paid in the form cash only
3. the aim of levying tax is to promote the welfare of the people living in the country
4. the object of tax is to raise revenue to the Government
5. tax is a legal collection
6. payment of tax involves an element of sacrifice
7. it is levied by the Government by virtue of its power confirmed under the
Constitution
8. Tax is not a payment for specific service rendered by the Government to tax payer
9. Tax is imposed on income or wealth or on a commodities i.e. either directly or indirectly, but tax is actuallypaid by the individuals.
Objects of tax
Every government has to discharge its statutory, administrative and social functions. To discharge these duties money is required by the Government. So every Government has to levy and collect taxes from the public. The objects of taxes are classified into two types.
1. Traditional Approach
2. Modern Approach
1. Traditional Approach:
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