Taxation is the means by which a government or the taxing authority imposes or levies a tax on its citizens and business entities. From income tax to goods and services tax (GST), taxation applies to all levels.The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the Central and the State. An important restriction on this power is Article 265 of the Constitution which states that "No tax shall be levied or collected except by the authority of law".Therefore, each tax levied or collected has to be backed by an accompanying law, passed either by the Parliament or the State Legislature. None the less, tax evasion is a massive problem in India, ultimately catalyzing various negative effects on the country. In 2018-19, the Direct tax collections reported by CBDT were approximately INR 11.17 lakh crore