The State is an instrument in the hands of the citizens created by the Constitution of India .The state is not an end in itself.
When a State Conducts its affairs, it has to understand its functions. The functions of State are broadly :

FUNCTIONS OF STATE
a) It makes laws so that personal property may be protected.
b) Other rights of individuals may not be violated.
c) The natural resources of the territory be preserved and made available to all the citizens at the proper times.
d) It maintains a police force for the safety of the citizens within the state.
e) An armed force for purposes of collective security.
f) The State also organises various public services, e.g. communication and transport, education, health, water supply, etc.
g) A judiciary is maintained in order to ensure that individuals shall honour their contracts. Thus the State touches every sphere of the individual's life and its laws and law courts, legislatures, police force and public services are parts of a comprehensive social plan. It is obvious that the individual's behaviour is very much regimented because he has to behave not as a private individual but as a citizen of a state. The individual does so either voluntarily if he is conscious of the social purpose which the state embodies or out of fear if he is not an enlightened citizen. If the individual considers that the laws of his state meet the common needs and are not meant for the benefit of only a few, his obedience is voluntary and he submits voluntarily to, say, the laws of compulsory education, sanitation, transport and communication., The unenlightened citizen submits because he is forced to do so and is afraid of punishment.(Akolkar : Social Psychology)

Notes on Tax Reforms :
1. On Taxation :
1.1 Taxation in a modern State is essentially for the purposes of meeting the functions of State.
1.2 In the modern world, it is extended by the principle of redistribution of income. In India, it has not achieved this purpose with the principles of social, economic and political justice which the nation is committed to. In taxing, government is in reality deciding how its needed resources shall be drawn from the nation's households and businesses and put into collective consumption and investment. The money raised through taxation is the vehicle by which real resources are transferred from private goods to collective goods. - Samuelson
1.3 The present polity and administration has made the people believe that the Government is something separate from themselves. The State today barely provides the functions of State. This is evident from the expenditure pattern of the Central and State Government.
1.4 That is why taxation is considered painful in India and is administered with harshness and without finesse. Taxation has evolved in the developed world and is based on canons. But even a cursory glance at taxation laws in this country reveal gross deviations from these canons. Taxation in this country do not conform the principality of equality before law. A smug argument comes in that Indian courts have validated all our tax laws and pronounced them to be not violative of Article 14 of the Constitution. Based on such decisions tax laws have been distorted to such an extent that rights of citizens have been violated. To an extent Courts have been biased towards the State. But, it may have been citizens failure to adequately convince the courts. 1.5 Taxation has become an end in itself and has become an obstruction to growth and development. Tax administration and tax law is heavily biased in favour of the State and the officers empowered in the enactments. The justice system which protects citizens against arbitrary actions is creaking and slow. Economic and commercial considerations do not allow for the costs of delays. Economic opportunities lost due to the inadequacies in the State system cannot be measured.