There are two types of tax incidence, they are economic incidence and statutory incidence. Economic incidence of tax is also known as the final incidence. The economic incidence of a tax is the final burden of that particular tax on the distribution of economic welfare in society.You can read about the Taxation in India – Direct taxes & Indirect Taxes, Features of Taxation System in the given link.
An example of statutory incidence of tax is, the statutory incidence of the corporate income tax falls on corporate executives. It means a group of individuals or individuals are responsible for physically remitting a particular tax to the government.
Further readings:
- Economics Notes For UPSC Examination
- UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure
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