Distinction between Direct tax and Indirect tax.
| Direct Taxes | Indirect Taxes |
| 1. They are directly paid to the government by the person on whom it is imposed. | 1. They are paid to the government by one person but their burden is borne by another person. |
| 2. They are generally progressive. The rate of tax increases with increase In income. | 2. They are generally regressive the rate of tax decrease as Income increases. |
| 3. The can’t be shifted on to others. | 3. The can be shifted on to others. |
