Question
Distinguish between the direct and indirect tax.
✓
Answer
| Sr. No. | Direct Tax | Indirect Tax |
| 1. | Burden cannot be shifted by taxpayers | Easily be shifted to another person |
| 2. | Tax is imposed on personal income and corporate income | Taxes imposed on various goods and services |
| 3. | Direct tax has no inflation pressure | This tax has inflation pressure |
| 4. | The impact and incidence are the same in case of direct tax | The impact and incidence are different in case of indirect tax |
| 5. | Direct tax is less elastic | Indirect tax is more elastic |
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