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प्रश्न
The following table indicates:
| Tax Base in ₹ | Rate of tax in % |
| 10,000 | 8 |
| 20,000 | 8 |
| 30,000 | 8 |
| 40,000 | 8 |
विकल्प
Progressive taxation
Regressive taxation
Proportional taxation
Degressive taxation
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उत्तर
Proportional taxation
Explanation:
- The table shows a proportional tax system. In this system, the tax rate stays at 8% regardless how large the tax base is (₹ 10,000, ₹ 20,000, ₹ 30,000, or ₹ 40,000).
- In a balanced tax system, everyone pays the same amount of their income, no matter how much they make. In other words, the tax rate stays the same regardless of how much cash is made or how much tax is collected.
APPEARS IN
संबंधित प्रश्न
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
Observe the relationship of the first pair of words and complete the second pair:
Tax paid by person on whose it is imposed : Direct tax.
A tax is paid by some person and the final burden is born by some other person : ______.
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
Match the following:
| Column I | Column II | ||
| A. | Impact of tax | (i) | Price stability |
| B. | Incidence of tax | (ii) | Simple to calculate |
| C. | Objective of Monetary Policy | (iii) | Ultimate burden of tax |
| D. | Proportional tax | (iv) | Original imposition of tax |
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
Define a degressive tax.
To which tax is this shifting of tax burden relevant?
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
Three demerits of an Indirect tax.
Explain the term Incidence of a tax.
