What is direct tax and indirect tax

Question

Accepted Answer

Direct tax is paid directly to the government by the taxpayer, while indirect tax is paid by the consumer while purchasing goods or services.

Direct tax is based on the income or profits earned by an individual or organization.
Examples of direct tax include income tax, corporate tax, and wealth tax.
Indirect tax is based on the consumption of goods or services.
Examples of indirect tax include sales tax, excise duty, and service tax.
Direct tax is progressive in nature, while indirect tax is regressive.
Direct tax is levied on the income or profits earned, while indirect tax is levied on the value of goods or services.
Direct tax is paid by the taxpayer directly to the government, while indirect tax is paid by the consumer while purchasing goods or services.

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