Question

How are direct taxes different from indirect taxes? (Any three points)

Answer 1

Sr. No	Direct Taxes	Indirect Taxes
1	Direct tax refers to the tax whose impact and incidence falls on the same person.	Indirect tax refers to the tax whose impact and incidence does not fall on the same person.
2	The burden of direct taxes cannot be shifted. Individuals or entities on whom the tax is levied bear the ultimate burden.	The burden of indirect taxes can be passed on to consumers in the form of higher prices.
3	Eg. Income tax, corporate tax, property tax	Eg. GST, sales tax, excise duty