Characteristics of tax are :
(i) It is a compulsory contribution. No one can refuse to pay a tax, on the general ground that he doesn’t derive any benefit from certain state services.
(ii) The fact that tax is a contribution implies the notion of a sacrifice involved on the part of the contributor.
(iii) Tax payment is a personal obligation.
(iv) Taxes are actually based on a great variety of material things as well as non-material and intangible form of wealth.
(v) A tax is levied according to certain legal requirements.
(vi) The amount of tax is not fixed with reference to the exact benefit which a taxpayer receives from public service.
(vii) A tax is paid out of the income of the taxpayer.
(viii) The power of taxation is mainly to be used for collecting revenue to the state.
