Distinguish between : Direct tax and Indirect tax.
Q.2 (B) (v) Distinguish between : Direct tax and Indirect tax.
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Answer: Direct tax vs Indirect tax
| Basis | Direct tax | Indirect tax |
|---|---|---|
| Meaning | Impact and incidence fall on the same person. | Impact and incidence fall on different persons. |
| Shifting | Burden cannot be shifted. | Burden can be shifted to others. |
| Levied on | Income and property of persons. | Goods and services. |
| Nature | Generally progressive. | Generally regressive. |
| Tax evasion | Possible. | Difficult, as it is included in price. |
| Examples | Income tax, corporation tax, property tax. | GST, customs duty. |
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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