Question 17 (Choice 2) - Part (b) - CBSE Class 12 Sample Paper for 2023 Solutions - Economics - Solutions to CBSE Sample Paper - Economics Class 12

Last updated at Dec. 13, 2024 by Teachoo

Distinguish between direct and indirect taxes, with suitable examples.

Answer:

Direct taxes are those taxes whose impact and incidence lies on the same entity. In other words, the liability of paying direct taxes can’t be shifted. For example: income tax.

Whereas;

Indirect taxes are those taxes whose impact and incidence may lie on different entities. In other words, the liability of paying indirect taxes can be shifted. For example: GST.

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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo

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