There are many differences between Income Tax and Excise Duty. Some of them are mentioned below:
Income Tax:
Definition: The personal income of people is subject to income tax.
Type of form: This kind of tax is a direct tax.
Source: Individual income sources include earnings, salaries, and pensions.
Charged on: Only individuals who earn more than a particular amount are subject to paying income tax.
Charged as a: A proportion of the money earned is what is charged.
Proportion: A bigger percentage of income must be paid in taxes by those with higher incomes.
Excise Duty:
Definition: Products manufactured or created in factories are subject to excise tax.
Type of form: This type of tax is an indirect tax.
Source: The price of the items that the factory owners sell includes the taxes they have to pay.
Charged on: Excise duty is levied on all industrial items.
Charged as a: This is billed directly from the factory, but in reality, the tax is passed through to the customers.
Proportion: Taxing certain commodities more than others boosts prices overall even if all taxes on goods increase the price.