1. Topic – introduction of tax and difference b/w direct and indirect tax

2. TERM TAX
Tax is a compulsory payment to be made by every resident of the india.
The foundation of an effective and stable finance system of a country lies in its tax system .
Tax is two types ;
direct
indirect

3. Difference between direct and indirect tax
Indirect tax –which is not paid directly to the govt.
Direct tax –which is paid by a different person on different income and it is paid directly to the govt.

4. Difference between direct and indirect tax …
Incidence of tax on one person .
Impact of tax shifts to other person .
The tax payer is one on whom incidence of tax fell and tax bearer is the one who finally bears the burden of tax .
Central govt revenue is about 44%.
Indirect tax paid to govt. by one person but he recover the same from another.
Direct tax
Incidence of tax on one person .
Impact of tax on one person .
Tax payer and tax bearer is one person .
Central govt. revenue is about 56% of total tax revenue .
Direct taxes are paid directly to the govt.

5. Direct taxes are those which the taxpayer pays directly from his income.
Those tax which are paid after the income reaches hands of taxpayer.
Tax evasion comparatively more in unorganised sector.
Important direct taxes are incime tax, gifty tax , wealth tax..etc..
Indirect taxes are those which the taxpayer pays indirectly .
Those taxes are paid before the goods reach the taxpayer.
Tax evasion comparatively less because of presence of organised sector.
Important indirect taxes are central excise, sales tax ..etc..