Indian Income Tax is

Indian Income Tax is classified as a direct and progressive tax. It is a direct tax because the burden (incidence) and impact fall on the same person and cannot be shifted to others [3]. It is governed by the Income Tax Act, 1961, and administered by the Central Board of Direct Taxes [t1][t3]. Furthermore, it is progressive because the tax rate increases as the taxpayer's income level increases [c2][c4]. This system ensures that higher-income groups pay a larger percentage of their income as tax compared to lower-income groups, thereby promoting vertical equity and redistribution of wealth [t1][t2]. While some elements of the Indian tax system, like corporate tax, may follow proportional patterns in specific contexts, personal income tax is fundamentally structured around income slabs that make it progressive [c4][t1].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Taxes can be classified in several ways: > p. 167
2. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > DIRECT TAX > p. 85