The correct answer is Corporate tax. Explanation & Key Takeaways: • Direct taxes are paid in entirety by a taxpayer directly to the government. • The tax where the liability, as well as the burden to pay it, resides on the same individual. • Direct taxes include tax varieties such as income tax, corporate tax, wealth tax, gift tax, expenditure tax etc. • Types of direct tax include : • Income Tax: Levied on and paid by the same person according to tax brackets as defined by the income tax department. • Corporate Tax: Paid by companies and corporations on their profits. • Wealth Tax: Levied on the value of the property that a person holds. • Estate Duty: Paid by an individual in case of inheritance. • Gift Tax: An individual receiving the taxable gift pays tax to the government. • Fringe Benefits Tax: Paid by an employer that provides fringe benefits to employees, and is collected by the state government. Related Concepts: • Indirect tax • Taxes, where the liability to pay the tax, lies on a person who then shifts the tax burden to another individual. • Types of indirect taxes are : • Excise Duty: Payable by the manufacturer who shifts the tax burden to retailers and wholesalers. • Sales Tax: Paid by a shopkeeper or retailer, who then shifts the tax burden to customers by charging sales tax on goods and services. • Customs Duty: Import duties levied on goods from outside the country, ultimately paid for by consumers and retailers. • Entertainment Tax: Liability is on the cinema owners, who transfer the burden to cinemagoers. • Service Tax: Charged on services rendered to consumers, such as food bills in a restaurant.