Study 24 Udaipur

Canons of taxation :  characteristics or qualities which a good tax system should possess. In fact, canons of taxation are related to the administrative part of a tax. Adam Smith first devised the principles or canons of taxation in 1776. Adam Smith : 4 Principles (i) Canon of equality or equity.     (ii) Canon of certainty (iii) Canon of economy.                  (iv) Canon of convenience. Modern economists have added more in the list of canons of taxation. (v) Canon of productivity.             (vi) Canon of elasticity (vii) Canon of simplicity.             (viii) Canon of diversity. 1.Canon of Equality • Canon of equality states that the burden of taxation must be distributed equally or equitably among the taxpayers. • However, this sort of equality robs of justice because not all taxpayers have the same ability to pay taxes.  Rich people are c...