A Direct Tax is a tax that is directly paid by the assessee / person to the revenue of Government generally on Income / Wealth / Estate held. These taxes are charged on the net income / net asset.
Collection of Direct Tax is 2% of the tax collected in India.
- Income-Tax Act, 1961 deals with Taxable entities, residential status, assessment, period (previous year, assessment year etc.), Heads of Income, Capital Gains, Deductions allowed etc.
- Wealth Tax Act, 1957 is the tax on wealth
- Gift Tax Act, 1958 is repealed now. It is still studied for academic interest