Question

How was tax collected from the people?
How did the king used these taxes?

Answer on the basis of past

Answer 1

tax were collected from people as in for a land revenue or in the form of goods like rice, wheat, gems etc...
the king used this money to build buildings
repair roads
and other well being of the people were concentrated

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Answer 2

The king's right to tax was the logical next step after the theory of absolute ownership of lands by the king. Manu describes the king as the absolute lord of the land and as such, the king was entitled to his share in the produce of the lands. The permission of the king was needed to buy, sell and donate land. In reality, the land was the people’s own, with the king only claiming absolute ownership. As long as the people worked the land and paid their taxes, they would be fine, but otherwise, the king could exercise his power and confiscate the land