Taxation in India

Taxes in India are levied by the Central Government and the state governments.

• In many parts of the plains thorny jungles grow, behind the good defence of which the people… become stubbornly rebellious… and pay no taxes.
  • Babur in his memoir Baburnama

• The Sultan then asked, "How are Hindus designated in the law, as payers of tributes or givers of tribute? The Kazi replied, "They are called payers of tribute, and when the revenue officer demands silver from them, they should tender gold. If the officer throws dirt into their mouths, they must without reluctance open their mouths to receive it. By doing so they show their respect for the officer. The due subordination of the zimmi is exhibited in this humble payment and by this throwing of dirt in their mouths. The glorification of Islam is a duty, and contempt of the Religion is vain. God holds them in contempt, for he says, "keep them under in subjection". To keep the Hindus in abasement is especially a religious duty, because they are the most inveterate enemies of the Prophet, and because the Prophet has commanded us to slay them, plunder them, and make them captive, saying, 'Convert them to Islam or kill them, enslave them and spoil their wealth and property.'No doctor but the great doctor (Hanifa), to whose school we belong, has assented to the imposition of the jizya (poll tax) on Hindus. Doctors of other schools allow no other alternative but 'Death or Islam.'"
  • Qazi Mughisuddin's reply to Sultan Alauddin Khalji. Tarikh-i Firoz Shahi, of Ziauddin Barani in Elliot and Dowson, Vol. III : Elliot and Dowson, History of India as told by its own Historians, 8 Volumes, Allahabad Reprint, 1964. pp. 184, chapter 15 [1]. Quoted in B.R. Ambedkar, Pakistan or The Partition of India (1946).

• But the Mogul rule could scarcely be compared with administration by the Indian Civil Service. The brilliant courts were centers of conspicuous consumption on a scale which the Sun King at Versailles might have thought excessive. Thousands of servants and hangers-on, extravagant clothes and jewels and harems and menageries, vast arrays of bodyguards, could be paid for only by the creation of a systematic plunder machine. Tax collectors, required to provide fixed sums for their masters, preyed mercilessly upon peasant and merchant alike; whatever the state of the harvest or trade, the money had to come in. There being no constitutional or other checks—apart from rebellion—upon such depredations, it was not surprising that taxation was known as “eating.” For this colossal annual tribute, the population received next to nothing. There was little improvement in communications, and no machinery for assistance in the event of famine, flood, and plague—which were, of course, fairly regular occurrences. All this makes the Ming dynasty appear benign, almost progressive, by comparison. Technically, the Mogul Empire was to decline because it became increasingly difficult to maintain itself against the Marathas in the south, the Afghanis in the north, and, finally, the East India Company. In reality, the causes of its decay were much more internal than external.
  • Paul Kennedy, The Rise and Fall of the Great Powers (1987), p. 13

• The Hindu was taxed to the extent of half the produce of his land, and had to pay duties on all his buffaloes, goats, and other milk-cattle. The taxes were to be levied equally on rich and poor, at so much per acre, so much per animal. Any collectors or officers taking bribes were summarily dismissed and heavily punished with sticks, pincers, the rack, imprisonment and chains. The new rules were strictly carried out, so that one revenue officer would string together 20 Hindu notables and enforce payment by blows. No gold or silver, not even the betelnut, so cheering and stimulative to pleasure, was to be seen in a Hindu house, and the wives of the impoverished native officials were reduced to taking service in Muslim families. Revenue officers came to be regarded as more deadly than the plague; and to be a government clerk was disgrace worse than death, in so much that no Hindu would marry his daughter to such a man. ... [These edicts] were so strictly carried out that the chaukidars and khuts and muqad-dims were not able to ride on horseback, to find weapon, to wear fine clothes, or to indulge in betel. . .... No Hindu could hold up his head. ..... Blows, confinement in the stocks, imprisonment and chains were all employed to enforce payment. "
  • Stanley Lane-Poole : Medieval India, quoted from B.R. Ambedkar, Pakistan or The Partition of India (1946)

• …The abolition of jizyah in Hindustan is a result of friendship which (Hindus) have acquired with the rulers of this land… What right have the rulers to stop exacting jizyah? Allah himself has commanded imposition of jizyah for their (infidels’) humiliation and degradation. What is required is their disgrace, and the prestige and power of Muslims. The slaughter of non-Muslims means gain for Islam…
  • Ahmad Sirhindi , Maktubat-i-Imam Rabbani translated into Urdu by Maulana Muhammad Sa’id Ahmad Naqshbandi, Deoband, 1988, Volume I, p.388 ff.This letter was written to Shaikh Farid alias Nawab Murtaza Khan who was opposed to Akbar’s religious policy, and who supported Jahangir’s accession after taking from the latter a promise that Islam will be upheld in the new reign.

• The real purpose of levying jiziya on them is to humiliate them to such an extent that they may not be able to dress well and to live in grandeur. They should constantly remain terrified and trembling. It is intended to hold them under contempt and to uphold the honour and might of Islam.
  • Ahmad Sirhindi in S.A.A. Rizvi, Muslim Revivalist Movements in Northern India in the Sixteenth and Seventeenth Centuries, Agra, 1965, pp. 248-249. Quoted from Goel, Sita Ram (1995). Muslim separatism: Causes and consequences. ISBN 9788185990262

• According to Mulla Ahmad, "the main object of levying of Jiziyah on them... is their humiliation... God established (the custom of realising) Jiziyah for their dishonour. The object is their humiliation and the (establishment of) prestige and dignity of the Muslims." Sri Ram Sharma reproduces Aurangzeb's order about the imposition and collection of Jiziyah dated 26th July, 1696. It says that "Jiziyah lapses on death and on acceptance of Islam".
  • Sri Ram Sharma, Aurangzeb's order, Mulla Ahmad, quoted in K.S. Lal. Theory and Practice of Muslim State in India (1999)

• In fine, the tribute you demand from the Hindus is repugnant to justice; it is equally foreign from good policy, as it must impoverish the country; moreover, it is an innovation and an infringement of the laws of Hindostan.
  • Appeal to Aurangzeb by a delegation of Hindus [variously ascribed either to Shivaji or to Rana Raj Singh ] in protest against the imposition of the Jizya. In Smith, The Oxford History of India, 438–39. Quoted from Spencer, Robert (2018). The history of Jihad: From Muhammad to ISIS.

• Thomas Roll, the president of the English factory in Surat wrote that jizyah was exacted by Aurangzeb for the duel purpose of enriching the treasury and for ‘‘forcing the poorer sections of the population to become Muslims.’’
  • Sharma SS (2004) Caliphs and Sultans: Religious Ideology and Political Praxis, Rupa & Co, New Delhi p 219, (quoted in Khan, M. A. (2011). Islamic Jihad: A legacy of forced conversion, imperialism and slavery ch 4)

• Muslim Asophs [asaf] or Lord Lieutenants . . . superintend large divisions of the country; and this greatly increased the evil; for these men, entirely sunk in indolence, voluptuousness and ignorance, confident of favour from the bigotry of their sovereign, and destitute of principle, universally took bribes to supply their wants; and the delinquencies of the Brahmans were doubled, to make good the new demands of the Asophs, over and above their former profits. Owing to this system, although the Sultan had laid on many new taxes, the actual receipts of the treasury never equaled those in the time of his father. The Amildars, under various pretexts of unavoidable emergency, reported prodigious outstanding balances; while they received, as bribes from the cultivators, a part of the deductions so made. Although the taxes actually paid by the people to government were thus much lighter than they had been in the administration of Hyder, the industrious cultivator was by no means in so good a condition, as formerly. The most frivolous pretexts were received, as sufficient cause for commencing a criminal prosecution against any person supposed to be rich; and nothing but a bribe could prevent an accused individual from ruin.
  • Taxation under the rule of Tipu Sultan
  • Francis Buchanan, quoted in in Vikram Sampath - Tipu - The Saga of Mysore's Interregnum (2024)

• He [Tipu] had great aversion to non-Muslims and this feeling became stronger by the ungrateful attitude of the Brahman revenue officials. After 1792, therefore, he placed the faithful Muslims in more of the important offices like the asofdaries and amildaries. Of the diwans or provincial revenue heads in 1792 only one was a Hindu. Of 65 asofs and deputy asofs in 1797–98 not one was a non-Muslim and almost all the principal mustaddis even were Muslim, whole of the 26 Mysore civil and military officers captured by the British in 1792 and demanded back by Tipu, six only were Hindus and even they were petty clerks. The communalization of offices in the Khodadad Sirkar began much earlier than 1792 but was intensified after the third Anglo–Mysore War . . . Strangely, the result was . . . the diminution of revenue . . . The officials so appointed to posts requiring deep knowledge and great patience . . . could scarcely read and write . . . the candidates were seldom chosen for any other reason than their being Mohamedans . . . he would promote a tipdar (commander of a hundred men) or a petty amildar to be a Meer Meeran (the highest military rank); and raise a risaldar to the honours of a Meer Asof (a member of the Board of Revenue) or a wretched Killedar . . . to those of a Meer Suddm (superintendent general of forts) . . . another change was the introduction of Persian as the medium of accounts in the revenue department. It was so far the practice in Mysore for the tarafdars to make out the revenue accounts in Kannada, fair copies of which were communicated to the amildars who had them translated into Marathi. Copies in both languages were kept under separate and independent officers meant as a reciprocal check . . . Tipu ordered the accounts to be submitted in Persian probably to help his Muslim officers and perhaps to Persianise [sic] Mysore . . . this change must have resulted in widening the gulf between the higher officials who were Muslims and their Hindu subordinates.21
  • Taxation under the rule of Tipu Sultan
  • M.H. Gopal, quoted in in Vikram Sampath - Tipu - The Saga of Mysore's Interregnum (2024)

• Even in the Revenue Code . . . Tipu exhibited his communal tendencies. Mussulmans were exempted from paying the house-tax and taxes on grains and other goods meant for their personal use and not for trade. Christians were seized and deported to the capital, and their property confiscated. Converts to Islam were given concessions such as exemption from taxes. Special attention was given to the education of Muslim children.
  • Taxation under the rule of Tipu Sultan
  • M.H. Gopal, quoted in in Vikram Sampath - Tipu - The Saga of Mysore's Interregnum (2024)

• We have a brilliant inscription authored in the third regnal year of the King Parthivendradhipati Varman, which throws brilliant light on the spirit of the era and the nature of the people embodying the spirit. It was issued by the members of the Great Assembly (Mahānāḍu) of Uttaramelur- Caturvedimaṅgalam. Here is how it reads: We, the members of this Great Assembly, having received Pūrvācāraṁ from Sandiran Eḷunnūruva Nuḷamba Māyilaṭṭi for the above land, ordered it to be free from all taxes as long as the moon and sun last. We shall not show any kind of tax… against this land.  We, the members of this Great Assembly, have also ordered that if any such taxes are shown against it, each person so showing, shall be liable to pay a fine of twenty-five Kaḷan̄ju of gold in the Dharmāsana or court of justice.
  • South Indian Inscriptions: Vol 3; Epigraphic Report of South India, 1907, in Stories From Inscriptions: Profound Real-life Tales from Hindu Cultural History 2022 Stories From Inscriptions_ Profound Real-l - Sandeep Balakrishna

• However, along with these beneficial measures for the peasants, differential treatment for people of various faiths was inherently embedded in Tipu’s revenue regulations. Clause 63 of the regulations stated: ‘The Deostan [Hindu temple] lands are all to be resumed throughout your district; and after ascertaining to what simpts [sub-divisions] they formerly appertained, you shall re-annex them, and include them in the jummabundy [revenue assessment] of those simpts.’14 This meant that the grants given to the temple establishments had to be cancelled and confiscated by the government. That the Amildar was a Brahmin and had to do this to temples of his own faith would have been a hugely discomforting act for him.
  • Vikram Sampath - Tipu - The Saga of Mysore's Interregnum (2024)

• Encouraging conversion to Islam, clause 73 states: Every person who shall become a convert to the Mahomedan faith, if he be a reyut [ryot], shall only pay half the usual assessment and shall be exempted from the payment of house tax; and if he is dealer in merchandize, his goods shall pass duty-free.18
  • Vikram Sampath - Tipu - The Saga of Mysore's Interregnum (2024)

• Economy of India
• Taxation
• Inheritance tax
• Tax noncompliance
• Taxation in the United States