In India taxes are charged by the central Government and State Government. And there are some minor taxes are also charged by the local authorities like municipality. The authority to charge the taxes is derived from the Constitution of India which allocates a specific power to various taxes between the state government and the central Government. An important restriction on this power is Article 265 of constitution which states that "No tax shell be charged or collected except the authority of law".
India has introduced multiple taxes with passage of time and imposed new ones. Few such taxes includes interest tax, gift tax, wealth tax etc
Taxation aims to raise revenue to fund governing. One of the major uses of taxation is to finance public goods and services. Throughout the nation the money provided by taxation is used to carry out many functions. Some of those functions includes economic infrastructure (Roads, public transport, health care systems, public safety, education, military, scientific researches etc), Governments use taxes to fund welfare and public services.
Governments use different types of taxation and vary the tax rates. They do this because to differentiate the tax burden on a single person or different classes of population involved may be like business sectors. Etc.