What is the effective incidence of tax? Check Answer at BYJU’S

A person or entity who actually bears the burden of tax is known as the effective incidence of tax. A person or entity which is obliged to pay the tax is known as a formal incidence of tax. You can read about the Taxation in India – Direct taxes & Indirect Taxes, Features of Taxation System in the given link.

Incidence of tax means an entity or person who bears the burden of taxation.

Further readings:

Related Links
Revenue Receipts- Tax Revenue and Non-Tax Revenue (UPSC Notes)	Direct Tax Code (DTC) – Implementation, Objectives, Pros & Cons
CBDT – Central Board of Direct Taxes: Functions and Structure	Double Taxation Avoidance Agreements (DTAA) – Countries Involved, Income Tax Provisions
Central Board of Indirect Taxes & Customs (CBIC) – Functions	Global Corporate Tax and India: RSTV- Big Picture
Minimum Alternate Tax (MAT) – UPSC Indian Economy Notes	Carbon Tax – Meaning and an Overview [UPSC Notes]

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What is the effective incidence of tax?