TAXES

There are two types of taxes:

• Direct Tax
• Indirect Tax

Direct Tax: It is the tax paid to the government directly by the assesses for example Income Tax  Tax, Municipal Tax  

Income Tax is collected by central government; Municipal tax collected state level government. It is main revenue of these governments

Personal Income tax is another type of Direct Tax, which is under the Central Government controlled by the Central Board of Direct Taxes. Now India following is income tax rates

Income tax slab for ay 11-12
New Income Tax Slabs for ay 11-12 for Resident Senior Citizens (FY 2010-11)
S. No.	Income Range	Tax percentage
1	Up to Rs 2,40,000	No tax / exempt
2	2,40,001 to 5,00,000	10%
3	5,00,001 to 8,00,000	20%
4	Above 8,00,000	30%
Income Tax Slabs for ay 11-12 for Resident Women (below 65 years) (FY 2010-11)
1	Up to Rs 1,90,000	No tax / exempt
2	1,90,001 to 5,00,000	10%
3	5,00,001 to 8,00,00	20%
4	Above 8,00,000	30%
New Income Tax Slabs for ay 11-12 Others & Men (FY 2010-11)
1	Up to Rs 1,60,000	No tax / exempt
2	1,60,001 to 5,00,000	10%
3	5,00,001 to 8,00,000	20%
4	Above 8,00,000	30%

Indirect Tax : Indirect taxes is source of revenue of government, Excise Duty,ServiceTax, Vat, Cst, customer indirect pay this tax in the form of Higher price.

The primary difference between a direct and indirect tax is that direct tax is levied directly by the government from the taxpayer, but indirect taxes are collected by the intermediary.