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Taxation

Direct tax is levied on an individual. In this case, the burden of the tax cannot be shifted. This type of tax is charged on taxable income earned by the individuals and corporate entities. Indirect tax on the other hand is paid for by the end-consumer of goods and services. Here, the burden of the tax can be shifted.

In India, taxes are mainly levied by the Central Government and the State Government. Apart from these, some minor taxes are also charged by local authorities like the Municipality and the Local Governments.

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