TAXATION

What is
Tax
 CHARACTERISTICS
OF TAX
DEFINITIONS

‘TAXO’ TAX To Estimate

 Definition of
Concepts

To tax means to impose a

financial charge or other levy
upon a taxpayer, an individual
or legal entity, by a state or
the functional equivalent of a
state such that failure to pay is
punishable by law.
(1) A tax is a compulsory payment and no
one can refuse to-pay it.
(2) Proceeds from taxes are used for
common benefits or general purposes of
the State.
there is no direct quid pro quo involved in
the payment of a tax.
● According to Prof Seligman – A tax is compulsory
contribution from the person to the government to defray
the expense incurred in the common interest of all without
reference to special benefits conferred.

● According to Bastable – A tax as a compulsory

contribution of the wealth of a person, or body of persons
for the service of public powers.

● De Marco defines – A tax as a share of the income of

citizens which the state appropriate in order to procure for
itself the means necessary for the production of general
public services.
● Hugh Dalton – A tax is a compulsory charges imposed by a public
authority irrespective of the exact amount of service rendered to the
tax payer in return and not imposed as a penalty for legal offence.

● Jom Bouvier defined a tax as “A pecuniary burden imposed for

support of the government, the enforced proportional contribution of
persons and property of the government and for all public needs”

● According to Trussing, “The essence of Tax as distinguished from

other charges by government is the absence of direct quid pro quo
between the tax payers and the public authority”.
From the above definitions we
may conclude that
 a tax is compulsory contribution

 levied by government from

owner of income without direct
benefit but for public benefit,

 and taxes should be arranged

by the law.
The taxes collected have been used by the government to carry out many
functions.

 expenditures on war,

 the enforcement of law and public order,

 protection of property,

 economic infrastructure (roads, legal tender, enforcement of contracts,

etc.),

 public works,

 social engineering, and

 the operation of government itself.

use taxes to fund welfare and public services:

 education systems,

 health care systems,

 pensions for the elderly,

 unemployment benefits, and public transportation

 energy, water and waste management systems,

common public utilities, etc.
1. Tax is compulsory

2. Tax is contribution FEATURES OF

3. Tax is for public benefit
TAXATION

4. No direct benefit

5. Tax is paid out of income of the tax

payer

6. Government has the power to levy tax

7. Tax is not the cost of the benefit

8. Tax is for the economic growth and

public welfare
CASE LAWS: TAX AND FEE

Mahant Sri Jagannath Ramanuj Das v.

State of Orissa, AIR 1954 SC 400
Commissioner, Hindu Religious
Endowments v. Sri Lakshmindra Thirtha
Swamiar of Sri Shirur Mutt, AIR 1963 SC
966.
Jalkal Vibhag Nagar Nigam & Ors v.
Pradeshiya Industrial and Investment
Corporation & Anr., Civil Appeal No. 6107
of 2021

Sreenivasa General Traders v. State of

A.P., 1983 4 SCC 353

Krishi Upaj Mandi Samiti & Ors. v. Orient

Paper & Industries Ltd., (1995) 1 SCC
655
 LAKSHMI.TALASILA
ASSISTANT PROFESSOR

GITAM SCHOOL OF LAW