Salient Features of Taxation.pptx

This Presentation is prepared for the Graduate Students. A presentation consisting of basic information regarding the topic. Students are advised to get more information from recommended books and articles. This presentation is only for students and purely for academic purposes.

1. Dr. Virag Sontakke
Assistant Professor
Department of Ancient Indian History, Culture and Archaeology,
Banaras Hindu University 1 Salient Features of Taxation

2. Introduction The tax was the main source of income for the state.
Taxes were taken by the Kings/ state .
In exchange, the king provided order, security, and peace in the kingdom. Since ancient times, there were many types of taxes for the growth of the Treasury. Tax revenue was utilised for kings policies Among the ancient Indian taxes, land tax and trade and commercial taxes were prominent. 3

3. Major sources of tax information in ancient India ऋग्वेद अथर्ववेद स्मृतिग्रन्थ महाभारत बौद्ध एवं जैन ग्रन्थ जातक कथाये धर्मसूत्र कौटिल्य का अर्थशास्त्र मनुस्मृति शुक्रनीति अभिलेख ताम्रपत्र विदेशी विवरण इतर ग्रन्थ , टिकायें इत्यादि 4

4. Origin of taxes The earliest reference to taxes is mentioned in Rigveda. In the beginning, when there was anarchy in the society, the people chose the brave man who protected the people as king and began to pay taxes in return for him.
The tax that the king collect was the remuneration to protect the people. Kautilya : Complete supporter of the taxation system Manusmruti : favor of taxes Gautama Dharmasutra : the people pay taxes because the king protects the people. Narada : agreed to Dharmasutra . 5

5. Concept of tax in ancient India The tax system was born in ancient India Tax collection was considered to be the right of the king. The tax was the main source of income for the State. Dharmasutras : the king can only recover legitimate taxes so that the producers also have enough money left to earn a living. In ancient India, emphasis has been laid on tax collection according to the bias-free situation .

6. The nature of tax in ancient India Initially, in the Rigvedic period, the tax was voluntary . Over a period of time, tax became mandatory . The tax system was as per the caste system.
The Brahmins and Kshatriyas were free from taxes because they rendered their services to the king as spiritual and security respectively.
According to the Dharmashashtras , taxes should be valid and fair . Taxes were taken in the form of cash, food, cattle and force .
The rate of taxes was based on production, land type and situation .
There was also a provision for tax exemption and penalty .

7. Type of Taxes

8. L and tax

9. Commercial tax

10. Rigvedic period The first literary evidence of the tax system is seen in the Rigvedic period.
In the Rigvedic period, the people used to pay taxes to the king according to their will . Reference of Bali In addition to the tax the religious sacrifices and gifts received by the king were called Bali . The word ' balihrita ' is used as the title of king. In the Rigvedic period, agro -animal husbandry was the main means of livelihood. For this reason, Bali was taken in the form of food grains and animals, not in cash. 12

11. Later-Vedic period Voluntarily tax of the Rigvedic period ( Bali ) now become Mandatory . The Atharvaveda mentions the “ Bhag ” to the king on the horses and the land of the village. In the Later Vedic period, the “Bhag” tax was taken from the farmers . And the traders were charged taxes called “ Shulk ".
This shows that the agriculture-based economy had started. In the Later Vedic literature, mention of Bhagadut and Samaharta These are identified as tax Collector officers. The tax was collected in the form of grains, animals, etc. 13

12. 6 th Century BCE By the time of Mahajanapad , tax become mandatory. Panini says that during this period, the land revenue Bhag was taken from 1/6 to 1/12. Gautama mentions three rates of land revenue Bhag, 1/6th, 1/8th and 1/10th. Jatakas, mentions of tax collector officer. १) बलिप्रतिग्राहक २) राजकम्मिक They used to collect Bali or other taxes. संग्राहक ( Collector) was the chief officer of tax. Officers like Drona, Mapak and Mahamatra used to collect taxes. Vinay Pitak : there were octroi enters at the mountain, river and city gates where octroi was applied to the import items.
There is also a mention of the Shulk (fee) in this period. 14

13. Mauryan and Post-Mauryan Period In the Mauryan period, for land revenue, Bhag भाग, Bali बलि, Kar कर and Hiranya हिरण्य are mentioned. In Arthashastra , the word Bali and Kar are mentioned along with the word Bhag . Diodorus wrote on the basis of megasthenes that farmers used to give a quarter of the produce as land revenue. Reference of the Bhag has come with 1/6 is to be recovered from the production of the land. The Junagarh inscription of Rudradaman mentions the bhaga ( bhoomikar ). Vishnu Purana : the king is called Shadbhagina षडभागिन or Shandashvruti षंडशवृत्ति . The समाहर्ता (collector) was the chief tax officer. The inspectors inspect the detailed accounts of taxes like how much tax should be charged and how much exemption should be given. Another officer named Gop used to collect taxes.
The tax called Pindkar was probably related to the collective tax of the villages.
The other major taxes of this period were Bali, bhag hiranya , pranay , vishti , etc. 15

14. Type of taxes: according to the Arthashatra Bhag : 1/6th of the produce Bali: another Land tax in addition to Bhag Kar: Annual tax levied on property Pindkar : Tax paid by the entire village Utsang : An offering was given by the people to the king Sita: Received from the state land Sena-Bhakt सेना -भक्त : A tax given to the army when they pass through the villages Opynik औपायनिक : उपहार Gift पार्श्व : Additional tax on higher profits कोष्टेयक : पानी भूमि पर कर। मरहिनक : Tax to compensate for the loss of damage caused by animals इसके अलावा राष्ट्र , दुर्ग , खानें , सेतु , वन , वज्र (पशुधन), वणिकपथ , शुल्क (सामान्य कर), दण्ड जैसे अनेक कर थे।

15. Gupta Period In this period, the rates of taxes were little less than the previous period. Kalidasa and Kamandak : the king should collect tax for the good of the society. Inscriptions : The king used to take 1/6 produce from the people as land revenue. In this period, mention of Bhag , Bhog , and Kar in terms of revenue. Bhog : Taxes in the form of fruits, milk, fuels, which the people gave to the king. Kar : There is a difference of opinion about it, it was probably a tax to be levied at a certain time. Rudradaman describes "tax" as painful for the people.
In this period, first time mention of taxes called Uprikkar and Uranga .

16. In this period, political power was decentralized.
There is a lack of business activity. The right to acquire taxes has been given to the feudal lords. The inscriptions of Maukhari , Gahadwal , Pal , Gurjar-Pratihar , Parmar, Chalukya , Kalchuri , Chandel mention the words ' Bhaga ', ' Bhog ', 'Hiranya' and 'Tax'. The Bhag was definitely the land revenue whose ratio was 1/6 । The practice of Hiranya Tax is also seen in this period. Due to increase in the burden and pressure of excessive taxes, the condition of farming class had become miserable. 18 Early Medieval period (600 to 1200 CE)

17. Early Medieval period(600-1200 CE) Taxes of Early Medieval period Halikakar : On the number of ploughs मेय/तुल्यमेय : Based on the weight of the objects Dhany : The portion of grain which was 1/6, 1/8, 1/10 and 1/12. Ditya दित्य: not sure about it. Vimukti विमुक्ति: A tax given to the feudal lord in place of the king. Parihar परिहार: A tax given to the feudal lord in place of the king. Dasaparadha tax : Taxes imposed as punishment. Chaurondharan : The tax charged by the police Hastidand \ हस्तिदंड : tax upon keeping elephants. Varvali वरवली: The tax of keeping the bulls. Liquor Tax / मद्यक़र : Tax on alcohol Karukar / कारुकर: A tax levied from craftsmen. Udrang / उद्रंग : It was the police or the security tax. Uprikar / उपरिकर: additional tax Shulk : a commercial tax

18. Land tax Bhag भाग , Bali बलि , Kar कर , Hiranya हिरण्य, Dhanya धान्य

19. Bhag भाग The major tax levied on the produce of the land was called the Bhag . Mahabharata : the king received 1/10 to 1/6 of Bhag . Kautilya : king should take the sixth part of the produce as a "tax". Megasthenes : king used to get a fourth of the produce of the land from the farmer. Ashoka in his Rummendei inscription : completely freed the lumbini village from Bali and reduced the part from the shadbhag (1/6) to the ashtbhag (1/8). Rudradaman's Junagarh inscription mentions Kar, Vishti , Pranay and Shulk. Someshwar : king received 1/6, 1/8 or 1/12 of the tax on the basis of the fertility of the land.
The simple ratio of the Bhag was 1/6, thus king was called shadbhaghin . Mentions of Bhag tax are found from ancient times to medieval times.

20. Bali बलि Bali is the oldest term mentioned for revenue. In the Rigvedic period, the people used to pay tax to the king according to their will. In addition to the tax the religious sacrifices and gift received by king called Bali. The word ' balihrita ' is used as the title of king. Ashoka's rummindei inscriptions describe Bali as a religious tax. In Milindpanho , bali has been called an emergency tax.
Reference of Bali, described in the Vedic and Buddhist texts, Gupta period, suggest its long-term prevalence .
Over time, the Bali was considered a religious tax and it was mentioned only with religious sacrifices.

21. Nature of Land Revenue Arthshashtra : The land revenue was 1/6th of production. Arthshashtra : the land of the village was divided into three categories. High ground (स्थल) Lowland (केदार) Other This probably indicate that different types of taxes for different types of land. Dharmasutra : the fields with fertile soil should be paid more taxes than less fertile fields. Brihaspati : the king should take taxes according to the land, Ex. 1/10 th from less irrigated/fertile land 1/8 th of the land irrigated by rain water The crop which has been harvested in the spring should take 1/6th of the part. 23

22. State management in the growth of land revenue Land revenue was main source of income thus, state arrangements were made for its growth. Special arrangements were made for the advancement of agriculture.
In the Maurya period, many types of exemptions were given to the people/farmers who were cultivating in the wasteland. Whoever built a new pond or a band had to be tax-free for five years.
Those who repaired the old ponds had a tax exemption for four years. State arranged irrigation system.
The Sudarshan Lake is a perfect example of irrigation prcatice . 24

23. Other Important Taxes 25

24. Types of Other Taxes Commercial Tax: शुल्क, Shulk घाटकर, Ghatkar मद्यकर इत्यादि Liquire अन्य कर: Other Taxes प्रणय, Pranay विष्टि, Vishti उद्रंग, Udrang हलिकाकर , Halikakar मेय/तुल्यमेय, Mey / Tulymey दित्य, Ditya विमुक्ति, Vimukti परिहार, Parihar दशापराध, Dashapradh चौरोंद्धरण, Choroddharan दशापराध, Dashapradh हस्तिदंड इत्यादि Hastidand

25. Details of some important taxes 27

26. Shulk शुल्क The Shulk was a commercial tax, which was charged from the traders. Shulk was levied on both internal and external trades. Shulk was levied at the borders of the States, across the rivers, at the main gates of the cities, in the ports and ports, in the markets. Mahabharata (S.P): one-twentieth of the dividend of goods was charged as Shulk. Arthashashtra : Different items should be charged differently. Arthashashtra : officer was called the " ” शुल्काध्यक्ष ” . Arthashashtra : It has been used as a octroi. Manusmruti : the place where tax was collected was called a “ शुल्कस्थान ” . Shukraniti : traders who used to the market secretly without tax, had to pay eight times more penalty than the shulk . Shukraniti : The duty on goods should be levied only once. Samudragupta’s Bihar pillar inscription: the officer who collected the shulk as a " shaulkik ".

27. Vishti विष्टि Vishti was a very ancient and comprehensive tax. It is mentioned in the Mahabharata . Vishti means बेगार (forceful labour/ services ). Greek writer Arian : craftsmen and artisans used to do vishti in place of tax. Arthashashtra : This type of services can be used in the state factory. Manu : The Shudras, craftsmen and artisans could pay taxes to the state as their services. Manu recommends Vishti .
Perhaps, the vishti was a painful tax, because, it was put on the list of additional taxes in Rudradaman inscription . Rudradaman junagarh inscription : he repaired "Sudarshan Lake" without collecting the additional Vishti taxes from the people. The farmers, herders and daily wagers could be taken as per the requirement Vishti was probably a day’s wages in a month.

28. Kar कर The word “ Kar ” is used in the Gautama Dharmasutra . Panini : The words Kar and क्षेत्रकर are mentioned V.S. Agarwal : कर and क्षेत्रकर, referred as field measuring officer Some scholars: considered Kar to be an annual tax on property. Kar must be oppressors, hence, Rudradaman says in the Junagarh record, “He has never collected any tax from the people like Kar, vishti or pranay ”. Samudragupta Prayag inscription mentions “Kar” Reference of ”Kar" are found from ancient times to medieval times.

29. Pranay Kar प्रणय कर Pranay Kar was an emergency tax .
When the state needed additional taxes, the excess taxes were called " pranay ". Arthshashtra : When the state faced an economic crisis, state collect pranay taxes from traders, craftsmen, farmers and cattle herders. According to Manu, pranay should not be more than 1/4. Perhaps, the Pranay was a painful tax, because, it was put on the list of additional taxes in Rudradaman inscription.

30. Hirany हिरण्य Initially, Hiranya was not a regular land tax which may have been levied occasionally. Shantiparva of Mahabharata and Arthashastra : the ratio is 1/10. Smriti describes it as a ratio of 1/50. Arthashastra : an officer named समाहर्ता ( Collector) should write the details of the Hiranya Tax.
It became a regular tax in the Gupta period . Hiranya means gold, so according to Upendranath Ghoshal , "Hiranya was a tax that was taken only on a special (precious) crop". It appears that this tax was collected in the form of cash money.
Mentions of Hiranya Tax are received from ancient times to the early medieval.

31. Utsang उत्संग The gift that the people used to give to the king at the time of a festival is called Utsang . Jatak : on the birth of the prince, each of the people brought one of the gift ( काषार्पण ). Similarly, on the occasion of coronation, the king received many gifts. Ambassadors from abroad also used to bring a lot of gifts. No information: utsang tax was mandatory or voluntary.

32. Uparikar उपरिकर The Uparikar is described in the Gupta and later periods. It is not mentioned in the pre-Gupta period. There is a difference of opinion among the meaning and nature of Uparikar .
The word Upari means extra in Sanskrit Hence it’s a probably Extra taxes.

33. Udrang उद्रंग Difference of opinion among the scholars about Udrang . In Rajtarangini , Drang is used in the sense of police outpost.
According to S. Maiti , it was a police tax or a security tax.
It is not mentioned in the pre-Gupta period. However, its constant mention in the Gupta era and later periods.

34. Udagbhag उदगभाग The tax levied on irrigation of agriculture was called Udagabhag .
The state administration maintained irrigation system.
The Sudarshan Lake of Pushyagupta Vaishya, the Governor of Chandragupta, is a perfect example. Udagbhag probably recovered as 1/3, 1/4 and 1/5. People were motivate to cultivate the barren, new land. For this, a variety of exemptions were given to the farmers.
M Gopal, A. Bose, V. Pathak accepted the existence of the Udagbhag But Lallanji Gopal believes that no tax was taken for irrigation. No reference of Udagbhag After the Mauryan period

35. Octroi and Dhanya चुंगी और धान्य The mention of octroi has come from the Mauryan period. Octroi was probably taken from traders, outsiders, foreigners while entering the state A few inscriptions of Gupta Period mentions Dhanya Dhanya means the king's share in grain.
This tax may have been taken as grain.

36. Halikakar हलिकाकर Halikakar is mentioned in the copper plates Central India. Halikakar is generally noticed in 600 CE Ghoshal : it was imposed on the hoe.
It may also be an additional tax. It probably was applied on ploughing in one season S. Maiti : Halikakar tax levied on the land tilled by the plough.
It is noteworthy that, until the Mughal period, there was a mentions of Halikakar .

37. Animal Tax पशु कर Megasthenes : cattle herders giving tax to the the king as per the animals Smirites : this tax was 1/50th of the value of the animals.
The government also used to tax the sale of animals.
According to Arthashashtra . . . . 1/2 value on chickens and pigs
1/10 th value on cow, buffalo, donkey, mule 1/10 th of its value on the camel and
Small animals were taxed at 1/6 th of their value.
The word animal tax is not mentioned in later times. However, in later times, there are mentions of taxes on animals like Hastidanda .

38. Ghatkar घाटकर Water management was important in ancient India, in this context tax was taken. The tax charged to cross the river was called ghatkar . Nasik Cave records of Ushavadutt mentioned that he had arranged to cross the River for free 6 th century copper plate of Vishnusen : the rate of unloading of material at the river ghats by the is as follows: Unloading of metal utensils of the boat was 12 silver coins, but when the purpose was religious, it was only 1. 1/4 silver coins .
The tax of a boat full of buffaloes and camels was 5 1/4.
The fare of a boat full of bulls was 2 silver coins, but the fare was taken less when the purpose was religious. Smriti and Arthashastra : Ghatkar described as a source of significant state income.

39. Klupt-Upklupt क्लुप्त –उप क्लुप्त Arthashashtra : Klupt ( क्लुप्त ) is mentioned as the various sources of revenue. Sham Shastri considers it a tax.
According to the D.C. Sirkar ... Klupt क्लुप्त : Tax to be levied from permanent farmers and Klupt-Upklupt उप क्लुप्त : Tax to be levied from temporary farmers. Klupt-Upklupt are mentioned in the Poona Copper plate of Prabhavati Gupta and the Chammak Copper plate of King Pravarsen II in the Vakataka period.

40. Bhutvat-Pratyay भूतवात -प्रत्याय Bhutvat-Pratyay ( भूतवात -प्रत्याय ): Mentions are found from the records/ copper plates of the 7 th century CE . Ghoshal identifies it as receives from the element ( तत्व ) and the air ( वायु ). Altekar calls it a tax on on the goods which manufactured and imported. This tax will probably be levied on goods of commerce – trade.

41. Circulation of taxes Reference of Bali , found in the Vedic and Buddhist texts, also in Gupta period, suggest its long-term prevalence. Bhag was important land tax No mention of the taxes like Pindkar and the Udakabhag after the Mauryan period. Taxes called Uparikar and Udrang were not mentioned before Gupta period. However, they introduced during Gupta Period and and went on till later times. The taxes called Meya ( मेय ) , Tulymeya ( तुल्यमेय ) and Ditya ( दित्य ) intoduced only after post-Gupta period. Halikakar is mentioned in sixth century in Central India. Upto the Mughal period, there was a "tax" on the plough.

42. Utilization of Revenue राजा जो कर वसूल करता था वह प्रजा की रक्षा करने का पारिश्रमिक था । राजस्‍व तथा करों को, शासन के द्वारा अपने व्‍यक्तियों को दी जा रही सेवाओं और उन्‍हें सुरक्षा प्रदान करने तथा कानून व्‍यवस्‍था को बनाए रखने के लिए, कर संग्रह किया जाता था। प्रजा के साथ-साथ शासन राजा को बाहरी तथा आंतरिक खतरों के प्रतिरक्षा प्रदान करना सड़कें बनाने, शिक्षण संस्थानों की स्थापना, नए गांव बसाने और समुदाय के लिए लाभप्रद अन्‍य गतिविधियों सामाजिक सेवाओं पर खर्च किया जाता था। जैसे –जैसे व्यापार और वाणिज्य की प्रगति हुई, वैसे कर पद्धति विकसित हुई

43. Principles of Taxation Manu: taxes should be collected according to the scriptures. Kamandak : the king should collect taxes like gwala or gardener.
Nashik Cave records, Gautamiputra Satkarni is called as a religious tax collector. Rudradaman's Junagarh records confirm that he had constructed the dam of Sudarshan Lake without imposing additional taxes on the people.
It is indicate that in ancient India, the rates of taxes were fixed keeping in mind the interest of the people

44. Determination of taxes and rates Prior assessment of the tax… the prevailing price of the commodity, the expenditure of supply and demand generation, etc., were considered by the authorities. मनुस्मृति : Taxes on the goods produced should be determined by Estimating the cost price Selling price, Road expenses, Expenses of the workers, etc. Bhag : This land revenue was mainly 1/6th, sometimes 1/8, 1/10, 1/12. Shulk : It was ranges from 1/20 to 1/50. Vishti : One day's wages in a month.

45. Rules of Assessment: Arthashashtra As the burden on the bull gradually increases, the tax should be gradually increased. Tax shall be limited so, the people of the outside state also attracted
Don’t imposed more tax.
Just as the bee collects a little juice for the hive, the king should impose a little tax on the subjects.
Tax should not be collected in the wrong way.
Emergency tax should be taken at the appropriate time.
Tax should also be taken from the subordinate State.

46. Key features of ancient Indian taxes The king had the right to increase and cut taxes In the history of ancient India, no mention of an autocratic king who raised the tax. Land revenue was a major source of income for the State. In Mauryan period water tax, octroi tax, toll and customs duties, tax on mining produce like metals, Salt imposed. Kautilya's concept of taxation was almost identical to the modern system of taxation. Post-Mauryan period, import and export duties were fixed on a value-quo basis. Similarly, octroi, road cess, boat-charges and other levies were all fixed.

47. Exemption from Taxation In ancient India, tax exemption was also witnessed Tax exemptions could have been short-term, partial or permanent. The sages, priests, women, scholars, religious institutions, Brahmins of the society had tax exemption. The blind, the deaf, the crippled, the disabled, the prostitutes and those who did not have any kind of livelihood, they had tax exemption. The tax on the rivers was not collected from the students, brahmins, women more than two months pregnant, the muni. Tax exemptions When the crop is damaged
When a natural disaster occurs When the farmers cultivationg barren land, the land revenue was relaxed for the stipulated period. The village of Lumbini was completely freed from the sacrifice.

48. Tax increase Manu: king should collected the land tax as the ratio of 1/4 in an emergency and 1/8 in a normal situation. Arthashastra : in case of an emergency, the state can take 1/4 to 1/3 Bhag instead of 1/6. 50

49. Conclusion Revenue was the main source of income of the State. The ancient Indian tax system was a progressive system. King used to collect taxes according to the Dharma. It was kept in mind that payment of taxes should be maximum beneficial for the taxpayer. Persons suffering from diseases or minors and students were exempted from taxes. It is mentioned in religious texts, Manu Smriti, Kautilya's Arthashastra , Shukrniti and Mahabharata that the increase of tax should be gradual, so that the interest does not diminish and there is no discontent among the people. Tax evaders and other offenders were fined. 51