| Direct Tax | Indirect Tax |
| (i) The Direct tax is the tax which is imposed by the Government on individuals and companies and which cannot be shifted to others. | (i) The Indirect tax is that tax which can be shifted to other persons by a person on whom it is imposed. |
| (ii) Here the incidence and impact of taxation falls on same person. | (ii) Here the incidence and impact of tax will be on two different parties. |
| (iii) Example- Income tax, Wealth tax, corporate tax etc. | (iii) Example central excise duties (tax), customs duties, service tax, value added tax etc. |
