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The Income Tax Act 2025 and Rules 2026 introduces a simplified, modern tax framework replacing the old law, with updated tax regimes, streamlined compliance, and a digital-first approach. This guide by FEMA Consultant and CA Manoj K. Pahwa highlights key changes, new tax slabs, and their impact on individuals and businesses in India.
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π§Ύ Direct vs Indirect Taxes: Key Differences You Should Know! Β by Return Filings Via Flickr:
Ever wondered how Indiaβs tax system is divided between direct and indirect taxes? π€
Hereβs a quick guide to help you understand where your money goes and how it's taxed.
π πΉ What Are Direct Taxes? These are paid directly to the government by individuals or businesses. π Examples: Income Tax, Corporate Tax, Capital Gains Tax.
π πΉ What Are Indirect Taxes? Charged on goods & services, and collected by sellers, passed to the government. π Examples: GST, Excise Duty, Customs Duty.
π‘ Key Differences: β Burden of Payment:
Direct: Paid by the taxpayer themselves
Indirect: Ultimately paid by the consumer through product prices
β Progressivity:
Direct taxes promote progressive taxation (more you earn, more you pay)
Indirect taxes apply equally, impacting all income groups
β Collection Mechanism:
Direct taxes through filing returns & TDS
Indirect taxes via sales chain and invoicing
π· Check the Infographic Here: π Flickr: https://www.flickr.com/photos/203245362@N06/54705228848/in/dateposted-public π¦ X: https://x.com/ReturnFilings1/status/1937488043302166575/photo/1
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