Direct taxes v/s Indirect taxes in India

Ishita Ramani | Last updated: 24 November 2021

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In India, taxes are levied by the government based on constitutional powers, divided between central and state levels. The two primary types are direct taxes, paid straight to the government by individuals or entities on their income or profit, and indirect taxes, paid at the point of purchase for goods and services. Direct taxes are equitable and can help reduce inequality and curb inflation, but can also discourage investment and feel like a burden. Indirect taxes are easier and more convenient to collect, but can make goods more expensive and are considered regressive as they affect all income levels equally.

Introduction In India, the governments right to impose taxes is derived from the Constitution Of India, which divides the power to levy taxes between the state and central governments. All taxes charged in India must be accompanied by a law issued by either the Parliament or the State Legislature. Indirect and direct taxes are the two most common types of taxes in India. In India, all taxes must be preceded by legislation passed by both the Parliament and State Legislatures. What is a Dire

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1999

(Excl. of GST ₹359)

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3499

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999

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About the Author

Ishita Ramani

Director - Operations

She is a young woman entrepreneur and currently the Operations Director at ebizfiling India Private Limited. In her entire career so far, she has led a team of 50+ professionals like CA, CS, MBAs, and retired bankers. Apart from her individual experience on almost every facet of Indian Statutory Compliance, she has bee ... Read more

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