Income tax: Income tax is the most well-known example among direct taxes. It is a tax levied on the income of a person in a financial year. It is a progressive tax, meaning that as the income increases, the amount of tax to be paid also increases. India has two separate regimes for paying income tax, known as the new regime and the old regime.
The new regime is an optional alternative to the older tax system, aiming to provide taxpayers with more flexibility and choice in managing their tax obligations. It has different slabs as well as different types of deductions.
