Year: 2025 | Month: September | Volume: 12 | Issue: 9 | Pages: 558-567
DOI: https://doi.org/10.52403/ijrr.20250953
A Historical Study of Taxation in India: Economic, Social and Political Dimensions
Aastha Singh1, Babli Rani2
1Research Scholar at Department of History, Shri Venkateshwara University, Amroha, Uttar Pradesh, India
2Associate Professor at Department of History, Shri Venkateshwara University, Amroha, Uttar Pradesh, India
Corresponding Author: Aastha Singh
ABSTRACT
This paper is an attempt to understand the historical evolution of taxation in India and examines its economic, social and political dimensions from ancient times to the present. Far from being only a fiscal exercise, taxation has functioned as a tool of governance, a mechanism of social control and a source of legitimacy for rulers across different eras. In ancient India, contributions such as Bali, Bhaga, and Kara, later formalised in the Mauryan and Gupta systems, linked taxation to agrarian production, kingship and religious patronage. The medieval period, under the Sultanate and Mughal empires, witnessed greater institutionalisation through systems such as kharaj, jizya, and the zabt, which shaped agrarian relations and sustained imperial power. Colonial taxation marked a turning point, introducing the Permanent Settlement, Ryotwari, and Mahalwari systems, alongside excise duties and the infamous salt tax. These policies were primarily extractive, fuelling rural distress, recurrent famines, and widespread resistance that fed into the nationalist movement. After independence, taxation was reframed as an instrument of development and redistribution. Land reforms, progressive income and corporate taxes, and more recent reforms such as the Goods and Services Tax (GST) reflect attempts to align revenue with democratic governance and nation-building. By adopting a thematic lens, the paper highlights continuities and changes in how taxation shaped economic growth, reinforced social hierarchies, and defined political authority. The analysis suggests that taxation has always carried meanings beyond revenue—it has influenced the distribution of power and resources, the structure of society, and the legitimacy of the state. Situating India’s experience in a broader global context also reveals parallels and divergences with other societies, underlining the universal yet context-specific nature of taxation. The study argues that historical insights into taxation remain highly relevant for contemporary debates on equity, efficiency, and the social obligations of both citizens and the state.
Keywords: Taxation history in India, Revenue systems, colonial economy, social hierarchies, Governance and state power
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