Direct tax revenue receipts refer to the income that the government generates from taxes directly imposed on individuals and corporations. In India, the two primary components of direct tax revenue are Personal Income Tax and Corporation Tax. These taxes are crucial for funding the government’s expenditures and play a significant role in economic policy and wealth distribution. Personal Income Tax is a tax levied on the income earned by individuals, Hindu Undivided Families (HUFs), and other non-corporate entities like trusts and associations. This tax is progressive, meaning that higher-income earners are taxed at higher rates. The Income Tax Act of 1961 governs the collection of personal income tax in India. Corporation Tax is a tax levied on the profits of companies and businesses. This tax is imposed on domestic companies registered under the Companies Act, as well as foreign companies operating in India. Like personal income tax, corporation tax is governed by the Income Tax Act of 1961.