What are Direct Taxes & Indirect Taxes in India?
Before discussing the Direct Taxes & Indirect Taxes in India, let us first understand what is the meaning of tax.
What is a Tax?A tax may be defined as a “pecuniary burden laid upon individuals or property owners to support the government, a payment exacted by legislative authority. In simple words, the tax is nothing but money that people have to pay to the government, which is used to provide public services.
Taxes are broadly classified into 2 Types-
1. Direct Taxes
2. Indirect taxes
What is Direct Taxes?A direct tax is a kind of charge, which is imposed directly on the taxpayer and paid directly to the government by the persons( juristic or natural) on whom it is imposed. A direct tax is a tax that cannot be shifted by the taxpayer to someone else. A significant direct Tax imposed in India is income tax.
What is Indirect Taxes?
What is the difference between Direct Taxes & Indirect Taxes?