Chapter 8 : Public Finance in India Q.3.Distinguish between the following concept 5. Direct tax and Indirect tax.

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board.

 

Chapter 8 : Public Finance in India

Q.3.Distinguish between the following concept

5. Direct tax and Indirect tax.

Direct tax	Indirect tax
It is levied on income and activities conducted.	It is levied on products or services.
The burden of tax cannot be shifted in case of direct tax.	The burden of tax shifted for indirect taxes.
It is paid directly by the person concerned.	It is paid by one person but he recovers the same from another person i.e. person who actually bears the tax ultimate consumer.
It is paid after the income reaches the hands of the taxpayer.	It is paid before goods/service reaches the taxpayer.
Tax collection is difficult.	Tax collection is relatively easier.
Example Income tax, wealth tax, etc.	Example GST, excise duty custom duty sale tax service tax