Capital receipts are those receipts which either create a liability or reduce an asset. Capital Receipts are non-recurring in nature.
for example- company sell out its shares to the public
Revenue Receipts are those receipts which neither reduce the assets of the company nor they create any liability. They are always recurring in nature and they are earned during the normal course of business.
for example- taxes and non taxes revenue
Direct tax is levied and paid for by individuals, Hindu undivided Families (HUF), firms, companies etc. whereas indirect tax is ultimately paid for by the end-consumer of goods and services.
The burden of tax cannot be shifted in case of direct taxes while burden can be shifted for indirect taxes.
Lack of administration in collection of direct taxes can make tax evasion possible, while indirect taxes cannot be evaded as the taxes are charged on goods and services.
Direct tax can help in reducing inflation, whereas indirect tax may enhance inflation.
