From this video you will learn What is Direct taxes and Indirect taxes & how it works, Types of Direct taxes, Advantages of Direct Taxes, Disadvantages of Direct Taxes, Indirect tax, Advantages of Indirect taxes, Disadvantages of Indirect taxes, Direct taxes and Indirect taxes explained for beginners in english.
Direct taxes:
Direct taxes are one type of tax that is levied directly on an individual taxpayer or an organisation who pays it to the government and cannot pass it on to someone else.
Direct taxation is levied on income, wealth and profit.
Types of Direct taxes:
- Income tax
- Transfer tax
- Property tax
- Capital gains tax
Advantages of Direct Taxes:
- It promotes equality
- It curbs inflation
- Promotes certainty
- Economical
Disadvantages of Direct Taxes:
- Evadable
- Disincentive
- Creates social conflict
Indirect tax:
These taxes are not levied directly on the income, profit or revenue of an individual but rather on the expenses that they incur.
GST or the Goods and Services tax is a good example of indirect tax.
Advantages of Indirect taxes:
- Everyone can contribute
- They are convenient
- They cannot be evaded
- They are spread over a wide range
Disadvantages of Indirect taxes:
- They can be regressive
- They raise the price of the commodities
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