Which Form 8865 Indirectly 2023-2024

Music, hello friends! Welcome to one more video. Let's discuss the difference between Direct X versus Indirect X. This is also a very important question. By learning this and watching this video, you will understand the topic of both Direct X and what is understood by Indirect X. Let's see this in detail. The first point of difference between Direct Axis and Indirect Axis is what is Direct X. In compact corporate tax, we can take the example of Direct X where excise duty, custom duty, service takes value at X, etc. This is an example of indirect X. Similarly, you can also add GST in Direct X. The second point is that the taxpayer is directed straight to the government in Direct X, while in indirect tax, the taxpayer pays indirect taxes through the dealer to the government. For example, when you purchase a bike or a two-wheeler, you pay tax to the dealer and the dealer pays tax to the government. Therefore, it is an indirect tax. Moving on to the third point, the taxpayer has to register with the authorities and file their income tax return in Direct X. On the other hand, the dealer has to register with the authority and not the taxpayer. The fourth point is that Direct X does not have any impact on the cost of goods because it is a tax on income. Therefore, it does not affect the demand. In contrast, indirect tax is the tax on the goods, which increases the cost and price, resulting in a reduction in the demand of goods. The fifth point is that high-income earners pay higher tax and low-income earners pay less or no tax in Direct X. Therefore, Direct X is progressive in nature, whereas indirect tax does not discriminate between the rich and the poor. The...