A direct tax is that tax whose burden is borne by the same person on whom it is levied. He cannot shift or transfer the burden of tax on some other person; he has to pay it himself.
For example, income-tax is a direct tax as it has to be paid by the person on whom it is levied.
An indirect tax is that tax which is initially paid by one individual but the burden of which is passed once to some other individual who ultimately bears it.
