What Type of Tax is Property Tax?

Property tax is a type of tax paid by the property owners to the municipal corporation, and it is a type of direct tax.

Wealth tax is a type of direct tax which is imposed on the annual net wealth of the taxpayers. However, it was abolished in 2016.

What is the Tax Deducted at Source?

Tax deducted at source is a tax collected by the person paying the amount. This type of tax is imposed on certain payments like rent, salary, interest, and commission.

What is Indirect Tax?

Indirect tax refers to the tax collected on the consumption of goods and services, such as GST, Excise duty, or customs duty.

Who is Liable to Pay Direct Tax?

Any company, organization, or individual earning income in India, including NRIs, non-theri income earned in India.

Do NRIs Need to Pay Both Direct and Indirect Taxes?

Yes, NRIs pay direct and indirect taxes.

What is the Difference Between the Direct and Indirect Taxes?

Indirect tax is embedded in the cost of goods and services and is paid indirectly to the government of India. In contrast, direct tax is paid directly to the government of India and is imposed on the profit and income of the individual.

NRI Income Tax & Compliance

Types Of Taxes In India: Direct Tax and Indirect Tax

By Pankaj Shaw |Last Updated: September 26, 2025

Types Of Taxes In India: Direct Tax and Indirect Tax

The Central and State governments of India mandate a financial charge on individuals and corporations, which in turn helps in financing the public services and activities of the government. This financial charge is known as taxes. Taxes are the government's major income source, which helps them build the country's infrastructure and the community.

As a responsible citizen, one must exercise the power to pay taxes to the government. There are different types of taxes, and in this blog, we are going to talk about the various taxes that are imposed in India.

Pankaj Shaw(Tax Expert)

Mr Shaw brings 8 years of experience in auditing and taxation. He has a deep understanding of disciplinary regulations and delivers comprehensive auditing services to businesses and individuals. From financial auditing to tax planning, risk assessment, and financial reporting. Mr Shaw's expertise is impeccable.

Frequently Asked Questions

The Taxation framework in India is broadly divided into two categories: the direct taxes, which are directly paid to the government of India, like an income tax, and the indirect taxes, which are collected by the intermediaries who then pass them on to the government, like GST.

Direct tax is a type of tax that the taxpayer or the organization directly imposes based on their income and or organizations to the government of India. For example: Income Tax, Corporate Tax, and the Capital Gains Tax.

Customs duty is a type of indirect tax that is imposed on goods exported from the country as well as on imported goods. The aim of imposing this tax is to ensure that every imported product entering India is taxed, and the tax imposed on the product being imported is known as import tax.

Corporation tax, or the corporate tax, is imposed on the profits made by a company from its business set in foregin or domestic.

Gift taxes are direct taxes and gifts are taxable if they exceed the prices of Rs 50,000 as normal slab rates.

Types Of Taxes In India: Direct Tax and Indirect Tax

Frequently Asked Questions

What are the Main Types of Taxes in India?

What is Direct Tax?

What type of Tax is Customs Duty?

Corporate Tax is Which Type of Tax?

Is Gift Tax a Direct or Indirect Tax?

Types Of Taxes In India: Direct Tax and Indirect Tax

Frequently Asked Questions

What are the Main Types of Taxes in India?

What is Direct Tax?

What type of Tax is Customs Duty?

Corporate Tax is Which Type of Tax?

Is Gift Tax a Direct or Indirect Tax?