What are direct and indirect taxes?

Question

Accepted Answer

Direct taxes are paid directly to the government by the taxpayer, while indirect taxes are paid indirectly through goods and services.

Direct taxes are progressive in nature and are based on the income of the taxpayer.
Examples of direct taxes include income tax, corporate tax, and wealth tax.
Indirect taxes are regressive in nature and are based on consumption.
Examples of indirect taxes include sales tax, excise duty, and service tax.
Indirect taxes are often passed on to the end consumer through the price of goods and services.
Direct taxes are usually paid annually, while indirect taxes are paid at the time of purchase or consumption.

Accepted Answer

A direct tax is imposed on an individual's income/wealth. An indirect tax is imposed on an individual who consumes goods/services.

Accepted Answer

Direct tax is levied directly on individuals or businesses or other entities by the government. It is based on their income, profits, or assets. One example of a direct tax in India is the income tax that individuals pay on their earnings from salary, business, or investments. The tax amount is calculated based on the income slab rates set by the government.

& indirect

Indirect tax is not directly imposed but is passed on to them through the goods and services they purchase. It is included in the price of the products or services. One example of an indirect tax in India is the Goods and Services Tax (GST). When you buy goods or services, GST is added to the price you pay, and the seller collects it on behalf of the government.

What are direct and indirect taxes?

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