MANAGEMENT

Detailed explanation-1: -Taxes are of two different types; direct tax and indirect tax. Taxes charged on income earned is called direct tax. Income tax is an excellent example of direct tax. On the other hand, an indirect tax is imposed by the government on a taxpayer for goods and services rendered.

Detailed explanation-2: -Income tax is levied on the income earned by an individual or a family, whereas expenditure tax is levied on the expenditure incurred by an individual or a family. Also, expenditure tax is progressive in nature, whereas income tax is not.

Detailed explanation-3: -An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income.