If you have not known what direct taxes are,I suggest you to see this page. However I am going to give you certain information about direct taxes here.
Direct tax is paid by a person on whom it is legally imposed. Thus the person paying and bearing tax is same. Examples:
- Income tax
- Property Tax
- Vehicle Tax
- Interest Tax
- Expenditure Tax
- Death Tax
- Gift Tax
- Casual Gain Tax
Merits of Direct Tax
- equitable as it is imposed on person as per property or income
- time, procedure and amount of tax to be paid is known with certainty
- elastic as the government can change tax rate with change of the level of property or income
- enhances the consciousness of citizens
- taxpayers feel burden of tax
- government is insisted to spend the contributions of people for development
Demerits of Direct Tax:
- gives mental pinch to taxpayers coz they have to curtail their income to pay to the government.
- taxpayers feelincoveniences as the government imposes tax progressively
- expensive for government to collect tax individually
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