Question

Which of the following is an advantage of direct taxes?

विकल्प

• Convenient to pay

• Wide coverage

• Levied according to the taxable capacity

• No Evasion

Answer 1

Levied according to the taxable capacity

Explanation:

1. One of the key advantages of direct taxes is that they are levied according to the taxable capacity of the taxpayer.
2. This means that individuals or entities are taxed based on their ability to pay, ensuring that those with higher incomes or wealth contribute more to the public revenue than those with lower incomes.