Types of Income Tax

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There are two types of income tax:

• Direct Tax: Direct tax is a tax that is directly collected from the tax payer. For instance: wealth tax, income tax etc.
• Indirect Tax: Indirect tax is paid by the third party i.e. VAT tax, service tax. Service tax is mainly charged to the individual. For example, if an item price is Rs 150, then its last price would be Rs 110 after VAT and this extra price of Rs10 will be paid by the individual person.

 

 

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