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India's Tax System: Then and Now – A Journey from 1947 to 2025 Introduction India's tax system has come a long way since independence. From a colonial-era legacy to a modern, digital-driven structure, the evolution of taxation reflects the changing face of the Indian economy and governance. Let’s explore the key differences between the post-independence tax system and the one we follow today. 1. Structure and Types of Taxes Then (Post-Independence, 1947-50s): Dominated by direct taxes , like income tax and wealth tax. Indirect taxes like sales tax, excise duty, and customs were levied at multiple levels. Tax base was narrow – only a small percentage of the population paid taxes. Tax administration was largely manual and paper-based . Now (2025): A robust mix of direct and indirect taxes , with GST (Goods and Services Tax) being a game-changer. Wider tax base due to digitization and transparency measures. Tax filings, refunds, and assessments are now...