Taxes are most important source of revenue for the Government. These can be categorized as Direct taxes and Indirect Taxes. Direct taxes are those taxes which are charged directly on the income or revenue generated by an Assesses. For example Income from Salary, Income from Business and Profession, Income from House Property, Income from Other Sources like winning from lotteries, horse races etc. whereas Indirect taxes are those taxes where people pay indirectly to the Government, for example Service Tax, Sales Tax, Value Added Tax etc. thus direct taxes are direct hit on a person’s income whereas indirect taxes are indirect hit on the earning capacity of a person.