Introduction to Trade, Ownership & Taxation

India is common law federal country, with separation of powers between the legislature, the judiciary and the executive. There is a division of legislative powers between states and the federation itself under article 246 of the Constitution. Each state has its own executive government, which functions independently from the federal government. In July 1860, James Wilson, the first Finance Member of the Governor General in Council, quoted thus from the authority of Manu while introducing the act for levying income tax in the country, As the leech, the calf and the bee take their food little by little, even so must the King draw from his realm, moderate annual taxes. In 1924, a Central Board of Revenue was created to administer central taxes. The attainment of Independence marked another paradigm shift for taxation.