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Direct tax-- is referred to as the tax, which is paid by the person to the government to whom it is levied and charged on the income and wealth of persons. Indirect Tax-- is referred to as the tax, which is paid by the taxpayer to the government indirectly, charged on goods and services. Direct tax-- The person on whom it is levied bears its burden. Indirect tax-- The burden of tax can be shifted to another person. Direct tax---Tax evasion is possible. Indirect tax--Tax evasion is hardly possible because it is included in the price of goods and services. Direct tax-- Direct tax helps in reducing inflation. Indirect tax-- Indirect taxes promotes inflation.

> *DIFFERENCE BETWEEN DIRECT TAX AND INDIRECT TAX** --Direct tax is referred to as the tax, which is paid by the person to the government to whom it is levied and charged on the income and wealth of persons where as Indirect Tax is referred to as the tax, which is paid by the taxpayer to the government indirectly, charged on goods and services. --In Direct tax The burden of tax is bear by the person on whom it is levied where as in indirect tax the burden of tax can be shifted to another person. --Wealth Tax, Income Tax, Property Tax, Corporate Tax, Import and Export Duties is example of direct tax where as Central Sales tax, VAT (Value Added Tax), Service Tax, STT (Security Transaction Tax), Excise Duty, Custom Duty is indirect type. --Direct tax helps in reducing the inflation where as Indirect taxes promotes the inflation. --The evasion of tax is possible in case of direct tax, if the proper administration of the collection is not done, but in case of indirect tax, the evasion of tax is not possible since the amount of tax is charged on the goods and services. --The nature of a direct tax is progressive, but the nature of indirect tax is regressive.

A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to any other person or group. An indirect tax is one that can be passed on-or shifted-to another person or group by the person or business that owes it.

Direct tax-- The person on whom it is levied bears its burden. Indirect tax-- The burden of tax can be shifted to another person. Direct tax---Tax evasion is possible. Indirect tax--Tax evasion is hardly possible because it is included in the price of goods and services. Direct tax-- Direct tax helps in reducing inflation. Indirect tax-- Indirect taxes promotes inflation.

**DIFFERENCE BETWEEN DIRECT TAX AND INDIRECT TAX** Direct tax-- is referred to as the tax, which is paid by the person to the government to whom it is levied and charged on the income and wealth of persons. Indirect Tax-- is referred to as the tax, which is paid by the taxpayer to the government indirectly, charged on goods and services. Direct tax-- The person on whom it is levied bears its burden. Indirect tax-- The burden of tax can be shifted to another person. Direct tax---Tax evasion is possible. Indirect tax--Tax evasion is hardly possible because it is included in the price of goods and services. Direct tax-- Direct tax helps in reducing inflation. Indirect tax-- Indirect taxes promotes inflation. Thanks

A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to any other person or group. An indirect tax is one that can be passed on-or shifted-to another person or group by the person or business that owes it. For more information please visit our blog https://www.cakart.in/blog/difference-direct-tax-indirect-tax/