ABSTRACT
The incidence of taxation is a subject which must be considered in relation to the person who actually bears the burden of taxation or, in other words, who pays the tax. It is clear from the above observations that, even as early as in the times of Manu, there was a clear concept as to public finance and the incidence of taxation. It is essential that in determining the question whether a particular tax is direct or indirect, the incidence of such taxation should be taken into consideration. Similarly, for income taxation, with an increase in the rate of tax or the burden of income-tax, there would be a reflection on the commodity prices if the person assessed has a monopoly of the articles, income from which is taxed in his hands.
