Types of Taxes: You pay some of them directly, like the cringed income tax, corporate tax, and wealth tax etc while you pay some of the taxes indirectly, like sales tax, service tax, and value added tax etc.

A corporate tax, also called corporation tax or company tax, is a direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed at state or local levels.

In general, there are three types of tax-exempt interest. Interest redeemed from Series EE and Series I bonds — Series EE and Series I bonds are U.S. savings bonds issued by the federal government. If the bonds were issued after 1989, the interest you earned from them may be excludable from income.

Learn about 12 specific taxes, four within each main category—earn: individual income taxes, corporate income taxes, payroll taxes, and capital gains taxes; buy: sales taxes, gross receipts taxes, value-added taxes, and excise taxes; and own: property taxes, tangible personal property taxes, estate and inheritance …

While direct taxes are imposed on income and profits, indirect taxes are levied on goods and services. A major difference between direct and indirect tax is the fact that while direct tax is directly paid to the government, there is generally an intermediary for collecting indirect taxes from the end-consumer.

Indirect taxes are typically added to the prices of goods or services. Sales tax, value-added tax, excise tax, and customs duties are examples of indirect taxes.

Indirect taxes make the distribution of income more unequal because of their regressive effects. The poor will get taxed a higher proportion of their income than the rich, making it a regressive tax. Higher indirect taxes can cause cost-push inflation which can lead to a rise in inflation expectations.

Indirect taxes have some disadvantages too, which are as follows: ADVERTISEMENTS: (i) Regressive: For instance, salt tax in India fell more heavily on the poor than on the rich, as it had to be paid at the same rate by all.

The Central Government of India levies taxes such as customs duty,income tax, service tax, and central excise duty. The taxation system in India empowers the state governments to levy income tax on agricultural income, professional tax, value added tax (VAT), state excise duty, land revenue and stamp duty.

Indirect taxes cannot be avoided in any circumstances.

Indirect taxes are commonly used and imposed by the government in order to generate revenue. They are essentially fees that are levied equally upon taxpayers, no matter their income, so rich or poor, everyone has to pay them.