Define Direct Taxes and Indirect taxes and give two examples each.

1.	Define Direct Taxes and Indirect taxes and give two examples each.
Answer» Direct Tax: - These are those taxes levied immediately on the property and Income of persons, and those that are paid directly by the consumers to the state. Examples: Income Tax, Wealth Tax, Corporation Tax etc. Indirect Taxes: These are those taxes that affect the income and property of persons through their consumption expenditure. Indirect taxes are those taxes levied on one person but paid by another person. Examples: Customs duties, excise duties, sales tax, service tax etc.

Answer»

Direct Tax: -

These are those taxes levied immediately on the property and Income of persons, and those that are paid directly by the consumers to the state.

Examples: Income Tax, Wealth Tax, Corporation Tax etc.

Indirect Taxes:

These are those taxes that affect the income and property of persons through their consumption expenditure. Indirect taxes are those taxes levied on one person but paid by another person.

Examples: Customs duties, excise duties, sales tax, service tax etc.

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