It is directly levied on a taxpayer who pays it to the government and cannot be passed on to another person/institution.
The main types of direct taxes in India are : * Income Tax: This is directly charged according to the income of an individual. * Corporate Tax: It is levied on the income of companies.
In India, the Central Board of Direct Taxes (CBDT) looks after the direct taxes.
Indirect Tax
They are levied on the goods and services bought and sold, and the burden of these taxes can be shifted to another person/institution. It is generally included in the price of a product.
Earlier, India had a host of indirect taxes in the form of Value Added Tax, Sales Tax, Excise Duty, which have now been subsumed by a single indirect tax, the Goods and Services Tax (GST).
With the implementation of GST, the principal of “One Nation, One Tax” has been implemented. However, goods such as petroleum, alcohol, electricity, etc. are not taxed under GST.
