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Abstract
Tax is a compulsory extraction made by the central government and state government from the general public. It goes to the government treasure which is then channelized for various developmental activities of an economy. Tax forms an important part of economic policies of any country. Indian taxation system is one of the largest taxation systems in terms of its wide application on large number of people and other business entities. Tax structure in India can be broadly divided into direct taxes and indirect taxes. Direct taxes are levied directly on the assesse upon his taxable income. Whereas, indirect taxes are those which are collected during the sale of goods and services by the seller and then deposited to the government on behalf of the final customers. However, this paper mainly discuss about the direct taxes only. It makes a brief outline of the historical background of direct taxes in India, its present day structure and the recent changes introduced in Budget 2019.