Tax-A Major Source of Revenue

India is a developing country. Growth and development of the country cannot be treated as sole domain of private sector. Due to lack of financial resources government has to intervene and contribute in the pace of development. Government needs fund to perform this task. It is always said that tax is the biggest source of revenue for the government. So, the basic objective of this paper is to analyse tax as a major source of revenue. A consideration has been made to find out whether direct taxes contribute more in tax revenue or indirect taxes contributes more. The trend analysis of cost proportion to tax collection has also been made.