Taxes are the major source of income for the government. Taxes are levied by the central government, state government and the local bodies.
These organisation spend the income earned through taxes for the welfare and development of the nation.
Broadly, taxes are of two kinds:
As the name suggests these taxes are directly paid by the person on whom these taxes are levied. These taxes are levied on the income and wealth. Examples of direct taxes are – income taxes, capital gains taxes, security transaction taxes, corporate taxes etc.