India has a multiple taxation system.

Explanation:
The taxation system in India is characterized by multiple taxes levied by different levels of government, including the central government, state governments, and local bodies. These taxes are imposed on various types of transactions and income, and they contribute to the overall revenue of the government.

1. Central Government Taxes:
The central government levies several direct and indirect taxes, including:

- Income Tax: It is a direct tax imposed on individuals and corporations based on their income. The tax rates vary depending on the income slab.
- Goods and Services Tax (GST): It is an indirect tax levied on the supply of goods and services. GST has replaced multiple indirect taxes such as excise duty, service tax, and value-added tax (VAT).
- Customs Duty: It is a tax imposed on goods imported into the country. The rates vary depending on the nature of the goods and their origin.
- Central Excise Duty: It is a tax levied on the production or manufacture of goods within the country.

2. State Government Taxes:
State governments in India also have the power to levy taxes. Some of the significant state taxes include:

- Value Added Tax (VAT): It is a tax levied on the sale of goods within a state. Each state has its own VAT rates.
- State Excise Duty: It is a tax imposed on the production or manufacture of certain goods within the state.
- Stamp Duty: It is a tax levied on various types of documents, such as property transactions, agreements, and share transfers.
- Professional Tax: It is a tax levied on individuals who earn a living through a profession, trade, or employment.

3. Local Body Taxes:
Apart from the central and state taxes, local bodies, such as municipalities and panchayats, also levy taxes. These taxes include property tax, entertainment tax, and octroi tax.

Conclusion:
The multiple taxation system in India is a result of the division of fiscal powers between the central, state, and local governments. Each level of government has the authority to levy taxes to generate revenue for public expenditure. The taxation system aims to ensure a fair distribution of the tax burden and promote economic growth and development.