A direct tax is one that is paid directly by the person who is subjected to it. The burden does not shift to the other in this scenario. There is a direct link between the taxpaying public and the taxing authority.
Direct Tax includes: Income Tax, Wealth Tax, Corporate tax, Gift Tax, Estate Duty. Etc.

1. In this sort of tax revenue, the person who pays the tax is also the one who is taxed, i.e., the tax burden is shared by both the payer and the assesses.
2. They are imposed on and collected from the Assesses.
3. Tax is collected in the Assessment Year for revenue generated the previous year, i.e., after the entire year’s income has been produced, or on the valuation date after the asset’s worth has been determined.
4. There is a direct link between the taxpaying public and the taxing authority.

An indirect tax is one that is imposed on someone who does not pay it directly. In this instance, the burden is shifted partially or entirely to the other party, i.e. the person who bears the tax and the person who pays the tax are not the same person. The taxpayer and the taxing authority do not have a direct relationship.
Indirect Tax includes: Customs Duty, Excise Duty, Sales Tax, Service Tax, VAT, GST, etc.
1. In this sort of tax revenue, the person paying the tax is not the same person who is being taxed, i.e., the tax burden is split between two people.
2. They are assessed and collected from the consumer, but the Assessee is responsible for paying them.
3. Tax is collected when a service is given or a product is bought or sold.
4. There is no direct link between the taxpaying public and the taxing authority.