Direct tax- Direct tax refers to those taxes which are directly imposed on individuals and companies and are paid directly by them to the government. For example, income tax- the tax burden cannot be shifted to any other person, wealth tax, corporate tax etc.
Indirect tax- Indirect tax are those tax which are imposed on an individual but are paid by another person either partly or wholly. Hence the impact and incidence of taxes are on different persons.
example- custom duties, excise duties.
