Which of the following statement(s) is/are correct about Direct Taxes? I.…

Concept: A direct tax is a tax charged directly on the income, profits, or wealth of the person or entity that ultimately bears it — it is paid straight to the government by the same taxpayer on whom it is levied, and its burden cannot be passed on to someone else. This is in contrast to an indirect tax (such as GST or customs duty), which is collected from a seller but whose burden is shifted to the buyer through the price of a good or service.

Application: Statement I describes direct taxes as taxes on the incomes of individuals — this matches the definition above, since a direct tax is charged on the income (or wealth) of the very person who bears it. Statement II says income tax is one of the direct taxes — income tax is charged directly on a person's or entity's own income, and its burden cannot be shifted onto anyone else, which is precisely why it is the textbook example of a direct tax (alongside corporate tax, wealth tax, and capital gains tax).

Cross-check — why the other options do not fit:

• "Only I" would require Statement II to be false, but income tax being a direct tax is itself a well-established, textbook fact — it is not false.

• "Only II" would require Statement I to be false, but describing direct taxes as taxes on income is not false — it is exactly how a direct tax is defined.

• "Neither I nor II" would hold only if direct taxes were instead charged on the value of goods/services and passed on through prices (the pattern of an indirect tax like GST) — that is not the case here.

Since both statements accurately describe direct taxes, the correct choice is that both I and II are correct.