1. Canon of Equality: The government should impose taxes in such a way that people have to pay according to their ability does not mean equal amount of tax but it means that the burden of a tax must be fair and just.
2. Canon of Certainity: Certainty creates confidence in the taxpayers cost of collection of taxes and increases economic welfare because it tends to avoid all economic waste
3. Canon of Convenience: Taxes should be levied and collected in such a manner that provides a maximum of convenience to the taxpayers should always keep in view that the taxpayers suffer the least inconvenience in payment of the tax.
4. Canon of Economy : Minimum possible money should be spent in the collection of taxes. Collected amount should be deposited in the Government treasury.
