Taxation System in Ancient Times: Development and Progress – An Economic Critical Study

Jyoti Pradip Bhoi

Chhatrapati Shikshan Mandal's Arts and Commerce College, Padgha, Bhiwandi.

Mobile No.: 9160987196

Email Add: dr.jyotibhoi@gmail.com

Abstract :The study of the taxation system in ancient India is important not only from a historical perspective but also from an economic one. Taxes were the primary source of state income, affecting production, distribution, consumption, investment, and social welfare. In the ancient Indian economy, the taxation system held a very significant place. Revenue collection was considered essential for administration, defense, the judicial system, and public welfare works. Specifically, a detailed description of the tax structure is found in Kautilya's text, Arthashastra.

The tax structure in ancient times was not just for filling the state treasury but also for maintaining social balance. The principle of collecting more tax from the wealthy and less from the poor was followed even then.

The taxation system in ancient times was highly disciplined and advanced. The system was primarily based on the thoughts of Kautilya (Chanakya) and Manusmriti. While describing how a king should collect taxes from his subjects, Kautilya stated: "Just as a honeybee collects honey from a flower without harming it, the king should collect taxes from the people without causing them distress."

In the present research paper, an attempt has been made to study the ancient taxation system, its assessment, methods, types, development, and progress. This progression is considered a symbol of the maturity of Indian economic administration. Therefore, even today, Bali (tribute) and taxes are considered primary sources of revenue, and paying taxes is regarded as a moral duty.

The collection of revenue through taxes is necessary for society, administration, governance, defense, the judiciary, and public welfare works; its importance and necessity remain just as relevant in the modern era. This benefits both our State and Central governments.

Keywords: Indian Knowledge Systems, Accounting Education, Ethical Accounting, Arthashastra, Sustainable Finance.