IDEAS home Printed from https://ideas.repec.org/a/sae/fbbsrw/v14y2025i3p261-271.html

Development of Indian Tax System: Pre and Post-Colonial Influences

Author

Listed:
  • Shashi Kapoor
  • Amanpreet Singh

Abstract

This article examines the origins, growth, and development of taxation practices in India. Based on multiple perspectives from historical research, the article divides up developments in the Indian tax system into four different governance regimes. These are the pre-colonial period (Ancient and Medieval), the colonial period (1857–1947), India as a Sovereign State under the 1950 Constitution (1950–1991) and post-economic liberalisation (1991–2020). In each of these periods, several major taxation developments that occurred in the country are reviewed, and the article highlights how different political and governance systems influenced the changes in the Indian tax system. Based on such changes and influence, the study also proposes agenda for future research. The article makes significant contributions to economic and business history research from a developing economy perspective and provides insights for any future developments in relation to tax systems.

Suggested Citation

  • Shashi Kapoor & Amanpreet Singh, 2025. "Development of Indian Tax System: Pre and Post-Colonial Influences," FIIB Business Review, , vol. 14(3), pages 261-271, May.
    • Handle: RePEc:sae:fbbsrw:v:14:y:2025:i:3:p:261-271
    DOI: 10.1177/23197145231164816
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/23197145231164816
    Download Restriction: no
    File URL: https://libkey.io/10.1177/23197145231164816?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, vol. 25(3), pages 259-298, December.
    2. Dennis J. Ventry, 2000. "The Collision of Tax and Welfare Politics: The Political History of the Earned Income Tax Credit, 1969 - 1999," JCPR Working Papers 149, Northwestern University/University of Chicago Joint Center for Poverty Research.
    3. Balbir S. Sihag, 2005. "Kautilya on Public Goods and Taxation," History of Political Economy, Duke University Press, vol. 37(4), pages 723-753, Winter.
    4. Rao, M. Govinda, 2005. "Tax system reform in India: Achievements and challenges ahead," Journal of Asian Economics, Elsevier, vol. 16(6), pages 993-1011, December.
    5. James Alt, 1983. "The evolution of tax structures," Public Choice, Springer, vol. 41(1), pages 181-222, January.
    6. Jonathan R. Kesselman, 1992. "Income Security via the Tax System: Canadian and American Reforms," NBER Chapters, in: Canada-U.S. Tax Comparisons, pages 97-150, National Bureau of Economic Research, Inc.
    7. Verma, Shraddha, 2015. "Political, economic, social and imperial influences on the establishment of the Institute of Cost and Works Accountants in India post independence," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 31(C), pages 5-22.
    8. Tirthankar Roy, 2002. "Economic History and Modern India: Redefining the Link," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 109-130, Summer.
    9. Greg Smith, 2010. "Australian Tax Reforms: Past and Future," Chapters, in: Iris Claus & Norman Gemmell & Michelle Harding & David White (ed.), Tax Reform in Open Economies, chapter 12, Edward Elgar Publishing.
    10. Eissa, Nada & Kleven, Henrik Jacobsen & Kreiner, Claus Thustrup, 2008. "Evaluation of four tax reforms in the United States: Labor supply and welfare effects for single mothers," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 795-816, April.
    11. Frankema, Ewout, 2010. "Raising revenue in the British empire, 1870–1940: how ‘extractive’ were colonial taxes?," Journal of Global History, Cambridge University Press, vol. 5(3), pages 447-477, November.
    12. Rao, M. Govinda & Rao, R. Kavita, 2006. "Trends and Issues in Tax Policy and Reform in India," India Policy Forum, National Council of Applied Economic Research, vol. 2(1), pages 55-122.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rishabh Kumar, 2020. "Top Indian wealth shares and inheritances 1966–1985," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 14(3), pages 551-580, September.
    2. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2014. "Comparing inequality aversion across countries when labor supply responses differ," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(5), pages 845-873, October.
    3. Felix J. Bierbrauer & Pierre C. Boyer & Emanuel Hansen, 2023. "Pareto‐Improving Tax Reforms and the Earned Income Tax Credit," Econometrica, Econometric Society, vol. 91(3), pages 1077-1103, May.
    4. Claudio Agostini & Pablo Correa & Carla Maldonado & Max Spiess, 2021. "Hoja en blanco: hacia una nueva institucionalidad y régimen tributario para Chile," Estudios Públicos, Centro de Estudios Públicos, vol. 0(161), pages 153-186.
    5. Nicole Simpson & Devin Reilly & Kartik Athreya, 2010. "The Earned Income Tax Credit: Insurance Without Disincentives?," 2010 Meeting Papers 1103, Society for Economic Dynamics.
    6. Hélène Périvier, 2007. "Les femmes sur le marché du travail aux Etats-Unis: une mise en perspective avec la France et la Suède," Sciences Po Economics Publications (main) hal-00972845, HAL.
    7. repec:ebl:ecbull:v:8:y:2005:i:4:p:1-8 is not listed on IDEAS
    8. Hirte, Georg & Tscharaktschiew, Stefan, 2018. "The impact of anti-congestion policies and the role of labor-supply margins," CEPIE Working Papers 04/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    9. Charles Gottlieb & Maren Froemel, 2015. "General Equilibrium Effects of Targeted Transfers: The case of EITC," 2015 Meeting Papers 1264, Society for Economic Dynamics.
    10. Ganghua Mei & Lei Yue, 2022. "Labor supply and time use: evidence from cohabiting women in the United States," Applied Economics, Taylor & Francis Journals, vol. 54(44), pages 5133-5158, September.
    11. Herwig Immervoll & Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Nicolaj Verdelin, 2008. "An Evaluation of the Tax-Transfer Treatment of Married Couples in European Countries," EPRU Working Paper Series 08-03, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    12. Benjamin Eden, 2009. "The Role of Government in the Credit Market," Vanderbilt University Department of Economics Working Papers 0907, Vanderbilt University Department of Economics.
    13. Claudio A., Agostini & Javiera, Selman & Marcela, Perticará, 2013. "Una propuesta de crédito tributario al ingreso para Chile," Estudios Públicos, Centro de Estudios Públicos, vol. 0(129), pages 49-104.
    14. Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2016. "Why Can Modern Governments Tax So Much? An Agency Model of Firms as Fiscal Intermediaries," Economica, London School of Economics and Political Science, vol. 83(330), pages 219-246, April.
    15. Otto Lenhart, 2021. "Earned income tax credit and crime," Contemporary Economic Policy, Western Economic Association International, vol. 39(3), pages 589-607, July.
    16. Frewer, Geoff, "undated". "Optimal Destabilisation, Active Learning, and the Choice of Step Length in Policy Reform," Economic Research Papers 269230, University of Warwick - Department of Economics.
    17. Bargain, Olivier B. & Orsini, Kristian & Peichl, Andreas, 2011. "Labor Supply Elasticities in Europe and the US," IZA Discussion Papers 5820, IZA Network @ LISER.
    18. Ewout Frankema & Marlous van Waijenburg, 2011. "African Real Wages in Asian Perspective, 1880-1940," Working Papers 0002, Utrecht University, Centre for Global Economic History.
    19. Shirley, Peter, 2018. "The response of commuting patterns to cross-border policy differentials: Evidence from the American Community Survey," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 1-16.
    20. Fischer, Benjamin & Jessen, Robin & Steiner, Viktor, 2019. "Work incentives and the cost of redistribution via tax-transfer reforms under constrained labor supply," Discussion Papers 2019/10, Free University Berlin, School of Business & Economics.
    21. Geir H. M. Bjertnæs, 2018. "The marginal cost of public funds in large welfare state countries," Discussion Papers 879, Statistics Norway, Research Department.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:fbbsrw:v:14:y:2025:i:3:p:261-271. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.