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types of direct tax

In most of the economies Income tax is a major source of Government revenue. A direct tax is paid directly to the government by an individual or organization. The key differences are as follows – Direct tax is that tax that is imposed on an individual and is paid by an individual, whereas the taxes which are paid by the taxpayers but in an indirect manner are known as Indirect tax. Hemant Batra is one name that comes to mind of many people in this scenario. Taxes which are collected directly from income and wealth are known as direct taxes. Check Tax structure & types of taxes in India in detail. In the case of a direct tax, the taxpayer is the person who bears the burden of it.Conversely, in the case of an indirect tax, the taxpayer, shifts the burden on the consumer of goods and services and that is why the incidence falls on different persons.Come, let’s take a read of the article, which gives you a clear understanding of the difference between a direct tax and indirect tax. The different types of tax we pay include: INCOME TAX Income tax is levied on all income and profit received by a taxpayer, which includes individuals, companies and trusts. Types of Direct taxes Income tax Income tax is collected on all incomes received by private individuals after certain allowances are made. Apart from these types of taxation, there are other taxes or cess levied by the government for specific purposes, which are – Krishi Kalyan Cess, Swachh Bharat Cess and Infrastructure Cess Tax. Taxation, imposition of compulsory levies on individuals or entities by governments. However, presence of tax loopholes (whose number increases in direct proportion to the complexity of tax code) may allow some wealthy persons to escape higher taxes without violating the letter of the tax … Direct taxes also reduce the capital available for companies to re-invest in their companies. ADVERTISEMENTS: Let us learn about the Direct and Indirect Types of Tax Systems. India has two types of taxes, namely Direct Tax and Indirect Tax. A good example of such a direct tax is corporation or company tax. Tax is the financial charge imposed by the Government on income, commodity or activity. This list includes taxes like GST, Customs Duty, Service Tax & other taxes. Revenue raised from the taxes are utilized for meeting the expense of Government like, provision of education, infrastructure facilities such as roads, dams etc. Income Tax: This tax is well known in India. It is also defined as the tax where the liability as well as the burden to pay it resides on the same individual. Know more about different types of taxes in India & Indian Tax … Key Differences. Direct Tax 1. This tax is paid by … Type of Taxes in India:-Direct Taxes:-These types of taxes are directly imposed & paid to Government of India. Indirect tax, also known as consumption tax, is the type of tax which are not directly borne by the person, whereas the incidence of such taxes is passed on to the end consumer of goods or services by adding such taxes in the value of those goods or services, like Excise duty, Service tax… Indirect Tax. Direct taxation contrasts with an indirect tax, which is imposed on a transaction and paid to the government by the firm after the good has been bought. 1 INTRODUCTION The taxes are the basic source of revenue for the Government. We define below: A. TYPES OF TAXES IN NIGERIA. It includes poll tax, land tax or income tax. Direct taxes are collected by the central government as well as state governments according to the type of tax levied. 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