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direct tax

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direct tax

Tax levied (imposed) directly on an individual or organization, in contrast to indirect taxes, levied on goods when they are purchased. Nearly all direct taxes are taxes on income or wealth, such as income tax, capital gain tax, or corporation tax. However, a poll tax is also an example of a direct tax. The opposite of a direct tax is an indirect tax.



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The outcome of the discussion would be used for modifying the proposals contained in the draft direct tax code," the minister said.
The new Direct Tax system would also take into account established and time tested practices which have withstood judicial scrutiny," he said.
As opposed to a direct tax on income, indirect taxes are usually based on value and are associated with consumption.
 
 
 
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