Understanding the Indian Tax System

byTulika Prashant

Have you ever wondered who builds our roads or pays the soldiers who protect us? The answer is—the government. But where does the government get the money for all this? According to the Union Budget 2025-26, approximately 66% of the government’s income is derived from taxes. The remaining revenue sources include borrowings and non-tax and non-debt capital receipts.

So, what is tax?Tax is the money that people and businesses must pay to the government from a part of their income or profit. This money helps the government take care of the country. Everyone contributes a small portion and together it adds up to a large amount that can be used for important things