Direct and indirect taxes:- direct tax:- direct taxes covers the taxes that cannot be transferred or shifted to another person, for instance, the income tax an individual pays directly to the government in this case, the burden of the tax falls d. Revenue realisation from direct and indirect taxes 64 direct taxes (income tax & other taxes) collections-pre assessment and post assessment scenario.
Chapter 6 direct and indirect taxes 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. Direct taxes, as the name suggests, are taxes that are directly paid to the government by the taxpayer it is a tax applied on individuals and organizations directly by the government eg income tax, corporation tax, wealth tax etc indirect taxes are applied on the manufacture or sale of goods and services these are initially paid to the government by an intermediary, who then adds the amount of the tax paid to the value of the goods / services and passes on the total amount to the end user. The direct tax collection till the end of october amounted to rs377 lakh crore and indirect tax collection amounted to rs485 lakh crore direct tax includes personal income tax and corporate tax indirect tax includes service tax and excise duty.
Income tax-it is imposed on an individual who falls under the different tax brackets based on their earning or revenue and they have to file an income tax return every year after which they will either need to pay the tax or be eligible for a tax refund. Broadly, there are two types of taxes that the indian government levies on its citizens – direct tax and indirect tax definition or meaning: direct taxes are those which are paid directly to the government by the taxpayer.
The article discusses the two different categories of taxes- direct and indirect taxes, and goods and services tax (gst) as an indirect tax. In case of a direct tax, the person who bears the tax and the person who pays/deposits the tax to the government is the same, whereas in case of indirect tax these are two different persons for example, income tax is a form of direct tax.
Direct and indirect taxes the most fundamental classification of taxes is based on who collects the taxes from the tax payer direct taxes, as the name suggests, are taxes that are directly paid to the government by the taxpayer it is a tax applied on individuals and organizations directly by the government eg income tax, corporation tax, wealth tax etc. Direct taxes have better allocative effects than indirect taxes as direct taxes put lesser burden over the collection of amount than indirect taxes, where collection is scattered across parties and consumers’ preferences of goods is distorted from the price variations due to indirect taxes.
The direct taxes in india are implemented by central board of direct taxes (cbdt) indirect taxes are basically the taxes which are not directly levied on the income of an individual but is indirectly levied on the expense incurred by the individual. Both direct and indirect taxes are important for our country as they are linked with the overall economy both are collected by the central and respective state governments according to the type of tax levied and are important for the government as well as growth perspective of the country.