Coupon Accepted Successfully!



  • In order to carry out its functions properly every state needs funds.
  • An important source of raising funds is levying of taxes.
  • Taxes could be direct or indirect.
  • Direct taxes are taxes which are not shifted. Examples of direct taxes are income tax, wealth tax.
  • It contributed 7% of the GDP in 2011-12.
  • Where the burden is shifted through a change in price, the taxes are indirect. Examples of indirect taxes are service tax, custom duty, excise duty, VAT, etc.
  • Tax revenue on account of centre, state and union territories form about 16% (2011-12)of the total national income of India.
  • Due to tax evasion and avoidance the black money is generated at the rate of 50% of the country’s GDP.

Test Your Skills Now!
Take a Quiz now
Reviewer Name