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प्रश्न
State the difference between income tax and expenditure tax.
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उत्तर
| S. No. | Aspect | Income Tax | Expenditure Tax |
| 1. | Tax Base | Based on the income of the individual or corporation. | Based on what an individual or entity spends. |
| 2. | What is Taxed | Earnings include salaries, corporate profits, and investment income. | Amount spent on consumption or specific expenses. |
| 3. | Purpose | Income tax encourages saving and investing. | Encourages savings by taxing spending, not income. |
| 4. | Common Examples | Individual income tax, corporate tax. | Some countries have expenditure taxes like luxury tax. |
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संबंधित प्रश्न
The essential feature of a tax.
A policy under which the government uses its expenditure and revenue to produce desirable effect and avoid undesirable effects on the national income, production and employment. This defines ______.
State two objectives of fiscal policy.
Citing reason state the advantage of a progressive tax over proportional tax.
Classify the following type of tax into direct and indirect taxes:
House tax
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An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
Discuss four fiscal policy objectives with reference to India.
Explain the state's role in achieving the objective of social justice in less developed countries.
Citing reasons state the superiority of Progressive tax over regressive tax.
