Q: Which tax is paid more by an assessee ?
Ans: There are two types of taxes in an assessment year :
1. Direct taxes
2. Indirect taxes
1.Direct taxes: The taxes which are paid by assessee himself are the direct taxes. E.g., Income tax, wealth tax, Gift tax ,etc.
2. Indirect taxes: The taxes which are not paid by assessee himself are Indirect taxes. E.g., G.S.T(Goods and services tax), custom duty, etc.
An assessee pays more indirect taxes as compared to direct taxes. Thus, indirect taxes generate more income for the government.
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