Direct tax is broadly classified as:

Income tax - It is a tax of an individual or a taxpayer other than a Hindu undivided family or companies, who pays on the income received.

Corporate tax -This is the tax that companies pay on the profits from their businesses. Here again, a specific rate of tax has been prescribed for corporates by the Income Tax laws of India.

Indirect taxes take many forms:Service tax on restaurant bills and movie tickets, value-added tax or VAT such as goods on clothes and electronics. The Goods and Services Tax, which has recently been introduced, is a unified tax, which has replaced all indirect taxes that business owners have to deal with.