CHANGING TAXATION SYSTEM IN INDIA: A TRIUMPH OF TAX REFORMS ABSTRACT- In the financial environment sweeping changes are taking

place. Indian tax system is a complex one in the world but has undergone a tremendous change. The beginning of the tax reform era is considered from the year 1983-84 but considering the big size of Indian population and its federal republic feature, the social contribution is found lacking somewhere. The structure of the tax system is a complex one at all the three levels named central, state and local level in India. In the present paper an effort has been made to review briefly the trends from direct taxes and indirect taxes in the countrys GDP. Also some weight age has been given with some evidence of data to the tax buoyancy and tax evasion which are the main problems. Tax reforms related to the tax system and its difficulty in moving towards a new tax-structure have been described briefly based on fluctuating trends, tax buoyancy and tax evasion. To analyze the evolution of the Indian tax system and the impact of historical and institutional factors in shaping Indian tax policy, trends in tax revenue are presented. These trends point toward a relative stagnation and deceleration in tax revenues at the Union, or central, and state levels.