Question

Distinguish between:

Direct tax and Indirect taх.

Answer 1

Basis	Direct Tax	Indirect Tax
Meaning	Tax paid directly by the taxpayer on income or property.	Tax levied on goods and services.
Burden of Tax	Cannot be shifted to others.	Can be shifted to others.
Impact and Incidence	Fall on the same person.	Fall on different persons.
Mode of Payment	Paid directly to the government by the taxpayer.	Paid at the time of purchase or sale of goods and services.
Examples	Income Tax, Wealth Tax	GST, Customs Duty