Types of Taxes categorize government revenue tools. Direct Taxes: Assessed directly on income or wealth; taxpayer bears tax burden; includes income tax (on earnings), corporate tax (on business profit), wealth tax (on assets), inheritance tax (on succession), property tax (on real estate). Progressive nature: Higher income/wealth pays proportionally higher tax. Indirect Taxes: Imposed on transactions, shifted to consumers; includes Goods and Services Tax (GST)—main indirect tax in India, Excise tax (on specific goods), Custom duty (on imports), Stamp duty (on documents). Regressive nature: Low-income groups pay higher proportion of income. Advantages of direct taxes: Progressive, transparent, voluntary compliance easier. Disadvantages: Evasion possible, compliance costs, complex administration. Advantages of indirect taxes: Difficult to evade, easy to administer, raises significant revenue. Disadvantages: Regressive, affects poor more, passes-through complexity. GST in India: Unified indirect tax, replaced multiple state taxes, consumption-based, multi-staged. Tax mix: Good tax system combines both types; developed countries use more direct taxes; developing countries often rely more on indirect. ICAI focus: Classification, comparing tax types, understanding progressivity. Exam tip: "Direct taxes are progressive, indirect taxes regressive"—fundamental distinction for MCQs.