In the Indian tax system, the taxes are broadly classified as Direct Taxes and Indirect Taxes. Direct Tax is a tax on individual person whereas Indirect Tax is a tax on goods and services. In the case of direct tax the burden of tax is on the individual concerned. In the case of indirect tax the burden of tax may shift to the consumer. Direct tax is charged on persons whereas indirect tax is charged on commodities and services. Indirect tax is collected in various forms from the manufacturer to the retailer. And ultimately the whole burden of indirect tax may shift to the consumer. Direct tax is directly paid to the Government by the person on whom it is imposed. The examples of direct taxes are: Income Tax, Wealth Tax and Gift Tax. The law of Direct Tax in India is regulated by the Income Tax Act, Income Tax Rules, Other Direct Tax Rules, Wealth Tax Act, Gift Tax Act, Expenditure Tax Act, Interest Tax Act, Finance Acts, Circulars and Notifications.
The national website of the Government of India on Income Tax is: www.incometaxindia.gov.in. For the three consecutive years, that is, 2007-08, 2008-09 and 2009-10 direct tax collections have surpassed indirect tax collections to become the highest revenue generator for the Government.
Direct Taxes Code is a proposed law to consolidate and amend the law relating to Direct Taxes in India. It may still take a year for the DTC to come into effect. It is still in the form of a bill - Bill No. 110 of 2010. You can access the contents of the bill at this link: Direct Taxes Code 2010.