Taxes are imposed so that a government may perform its traditional functions (defence and maintenance of law and order), undertake welfare and developmental activities, and make provision for public goods to satisfy collective needs of the people. It has also to pay for its own administration. References to taxes in ancient India are found in Manu Smriti, Kautilya s Arthashastra and other sources. Similarly, vivid accounts of tax system in medieval India are found in contemporary court chronicles, particularly Ain-i-Akbari compiled by Abul Fazl, one of Akbar s courtiers. Travel accounts of visitors, especially those who came from the West, also throw light on the Mughal system of revenue administration. The tax system of British India reflected characteristics of a traditional agricultural economy. Revenues of the central government were dominated by customs duties as domestic requirements for manufactured goods were met mostly by imports, chiefly from Britain. Import duties were levied on almost all items of imports whereas major items subject to export duties were jute and tea in which India enjoyed near-monopoly in the world market. After Independence in 1947, the Indian tax system has undergone major structural changes. It has become comprehensive and complicated over the years. It has successfully mobilised resources to finance developmental, welfare and administrative activities of the public authorities. Restructuring of the tax system constituted a major component of fiscal reforms initiated in 1991. The main focus of the tax reforms was on simplification and rationalisation of both direct and indirect taxes with the objective of augmenting revenues and removing anomalies in the tax structure. Tax reforms in recent years have brought the tax system much closer to best international tax practices. A historic tax reform in the form of goods and services tax (GST) was introduced in India from July 1, 2017. This book provides an exhaustive and critical account of various aspects of the Indian tax system in historical settings. It places current developments in the field of taxation in perspective. The book contains 22 chapters which have been organized into 3 parts. Part I (chapters 1 and 2) is titled Taxes in Ancient and Medieval India. The detailed analysis given in Manu Smriti and Arthashastra on the subject shows the existence of a well-planned taxation system, even in ancient times. Taxes were paid in the form of gold coins, cattle, grains, raw materials and also by rendering personal services. Similarly, there were various types of taxes during the Sultanate period and the Mughal rule. Land revenue by far was the most important source of income for the Mughal rulers. The land revenue system adopted by Akbar has been greatly admired by historians. Part II (chapters 3 to 8) is titled Taxes during British Rule. It explains and examines the financial administration of the British rulers and the introduction of income tax, excise duties and sales tax by them. Rationalization of customs duties, and the working of federal-provincial financial relations are also discussed in this part. Part III (chapters 9 to 22) is titled Post-Independence History of Taxation. This part is further sub-divided into Part III (A) and Part III (B). Part III (A) (chapters 9 to 14) is titled Multiple and Punitive Taxation during Pre-reforms Period (1947 to 1990). It explains the policy of integrated direct tax system introduced soon after Independence in 1947. It also describes the structure of income tax, excise duties, customs duties and sales tax. Part III (B) (chapters 15 to 22) is titled Moderate and Rationalized Tax System in the Post-reforms Period (Since 1991). It deals with approach to tax reforms, rationalization and simplification of income tax, excise duties and customs tariff, introduction of service tax, and states switch over from sales tax to value added tax (VAT).