Tax revenue in India is a significant component of the central government’s revenue receipts, and it is broadly categorised into direct taxes and indirect taxes. Each type of tax has its own structure, impact on the economy, and application in fiscal policy. Direct taxes are those that are directly levied on the income or wealth of individuals and corporations. The responsibility of paying the tax falls directly on the taxpayer, and the burden cannot be shifted to another party. Indirect taxes are those that are not directly levied on income but on goods and services. These taxes are collected by intermediaries (like retailers) from the consumers who bear the ultimate economic burden.