1. Discuss the major features of India's tax system, including its classification into direct and indirect taxes.

India’s tax system includes direct and indirect taxes.
Direct Taxes: Paid directly by individuals or organizations to the government.
- Centre: Personal Income Tax, Corporate Income Tax, MAT, Capital Gain Tax, Equalization Levy.
- State: Land Revenue, Property Tax.
Indirect Taxes: Collected by an intermediary from the person bearing the economic burden.
- Centre: CGST, IGST, Customs Duty.
- State: SGST, Stamp Duty.
Other Classifications: Progressive/Proportional/Regressive, Specific/Ad-valorem, Production/Consumption-based.

Diagram: TAX

TAX
- Direct
  - Centre
    - Personal Income Tax
    - Corporate Income Tax
    - Minimum Alternate Tax
    - Capital Gain Tax
    - Dividend Distribution Tax
    - Securities Transaction Tax
    - Equalization Levy
  - State
    - Land Revenue
    - Property Tax
- Indirect
  - Centre
    - CGST
    - IGST
    - Customs Duty
  - State
    - SGST
    - Stamp Duty

Before GST came into effect on 1st July 2017, Indirect taxes were classified in following way: Diagram: Indirect Taxes

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