Direct taxes are levied directly on individuals and organizations by the government, and the burden of these taxes cannot be shifted to others. Unlike indirect taxes, which are imposed on goods and services and can be passed on to consumers through higher prices, direct taxes are paid directly by the entity on which they are levied.

1. Income Tax:

This is the most common form of direct tax and is levied on the income earned by individuals, businesses, and other entities. Income tax rates usually vary based on income levels, with higher incomes generally taxed at higher rates. There are different types of income taxed, including wages, salaries, interest, dividends, rental income, and capital gains.

2. Corporate Tax:

This tax is imposed on the profits earned by corporations or businesses. Like income tax, corporate tax rates can vary depending on the jurisdiction and the size of the corporation’s profits. It’s an important source of revenue for governments, especially in countries where corporations play a significant role in the economy.

3. TDS:

It stands for Tax Deducted at Source. It’s a mechanism through which the government collects tax from the source of income itself. When certain types of payments are made by individuals or entities, the payer is required to deduct a certain percentage of tax before making the payment to the recipient. This deducted tax is then directly deposited with the government on behalf of the recipient.