Question

Give any two examples of direct tax.

Give examples of direct tax.

State two examples of direct tax imposed by the central Government in India.

Answer 1

1. Income tax is imposed on individual persons based on their income earned in a year. Every person who is liable to pay tax has to bear the burden of this tax, and it cannot be shifted.
2. Similarly, corporation tax imposed on company profits is paid by the company itself. Gift tax and wealth tax are other examples of direct taxes.