Taxes

tax


Taxes are the compulsory payments done by the public to the government. The government uses the money received for public welfare. Taxes can be levied only by the appropriate government. There are mainly 2 types of taxes:-

Direct tax:-
Paid directly by the person who earned the money to the government.
In India, the major source of Direct tax is Income tax and Wealth Tax. Income Tax is levied on slab bases which means there are fixed slabs for people who earn money. Income tax is progressive in nature which means taxes increases with an increase in Income.

Indirect Tax:- Paid by the end consumer through moderators to the government. There are mainly 2 sources of Indirect taxes - Gst and Custom they both are equally important. Gst is levied on goods and services and custom is levied on Import and Export of goods.
Direct and Indirect both are the forms of taxes which are levied by the government to get the revenue to meet the expenditure done for the welfare of the public.


BasisDirect TaxIndirect Tax
MeaningTax is the compulsory payment to the government. Direct tax is directly paid to the government by people.Tax is the compulsory payment to the government. Indirect taxes are not directly paid to the government.
BurdenBurden Can't be shiftedThe burden can be shifted
LevyOn the Income or WealthOn goods and services
NatureProgressive in nature (Increases with an increase in Income)Non-progressive (Same for Everyone) 
Major typesIncome Tax, Wealth Tax and Corporate TaxGST and Custome duty



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