Features Of Direct Tax

The main characteristics or features of direct tax can be described as follows:

1. Cannot Be Shifted

The burden of direct tax cannot be shifted to another person. Tax payer should bear the burden of tax.

2. Certainty

There is certainty in the amount of tax and time of payment. So, the tax payer knows how much tax to pay and when to be paid.

3. Elastic

Direct tax is elastic in nature. Authority or government can change (increase or decrease) the rate of tax at any time.

4. Productive 

It is productive in nature because amount of tax increases according to the increase in the income of tax payer.

      Also Read: 

Features Of Indirect Tax

Advantages And Disadvantages Of Direct Tax

Advantages And Disadvantages Of Indirect Tax

5. Educative

Direct tax educates the taxpayer or makes more conscious about tax liability. He/she also tries to be informed how the tax revenue is utilized by the nation.

6. Anti-inflationary 

Government uses direct tax as a powerful instrument to control inflation by increasing tax rate.