Tax is a major source of revenue to the government, the development of any country’s economy largely depends upon the tax structure it has adopted. A good tax structure economy will help the business in smooth functioning of operations and also it helps to avoid the chance of tax evasion. The Tax structure of an economy plays an important role in a country’s development. As per the provisions of the Indian Constitution, the power to levy taxes and duties is distributed among the three tiers of Government. Many problems such as Tax Evasion, Black money, existence of parallel economy etc. shows that Indian taxation system requires some major changes in the near future to overcome all these problems. This research paper evaluates the impact of both direct and indirect taxes on economic growth of India. The study is conducted purely based on secondary sources of data. It is seen that there are various number of taxes and different tax collection authorities are present in India.