The Taxation policies in India have an vital impact on the economic operations, growth, and sustainability of small businesses. This study focused to evaluate the different angles of the impact of taxation on small businesses in the India. It also look into the direct and indirect outcomes of various taxes on the functioning of small business enterprises. Such taxes are income tax, goods and services tax, corporate tax, and local levies. The study identifies certain challenges that are faced by the small businesses in meeting their tax obligations, compliance burdens, and financial implications imposed by taxation. This research also investigates the relationship between various taxation policies and key business metrics such as profitability, investment decisions, job creation, and overall economic contribution. By examining various possible reforms or policy recommendations that reduce the burden of tax on small businesses and by promoting a supportive environment for the growth and development of such businesses. The findings of the study are prepared to provide an complete understanding to the government, policymakers, tax authorities, and stakeholders who are involved in the formation of regulation of tax policies and thereby contributing to the development of business friendly taxation model for small businesses in India.