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प्रश्न
Citing reason state the advantage of a direct tax over an indirect tax.
Mention three merits of direct taxes over indirect taxes.
Citing reasons state the superiority of A direct tax over an indirect tax.
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उत्तर
- Direct taxes cost less to collect than indirect taxes.
- Direct taxes are often progressive, which means they can more effectively reduce income and wealth inequities. Whereas, indirect taxes have a regressive pattern.
- Like indirect taxes, direct taxes are unlikely to cause product price increases.
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संबंधित प्रश्न
Instrument of monetary policy is:
Monetary policy means regulation of money supply by the monetary authority.
Wealth tax is an example of:
Match the following:
| Column I | Column II | ||
| A. | Direct tax | (i) | Tax rate increases with tax base |
| B. | Indirect tax | (ii) | Tax rate remains constant |
| C. | Proportional tax | (iii) | Imposed on goods and services |
| D. | Progressive tax | (iv) | Impact and incidence lie on the same person |
Read the following statements carefully and choose the correct alternative:
Assertion (A): Income tax is a direct tax.
Reason (R): GST is an indirect tax.
Define a degressive tax.
What is meant by regressive taxation?
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
State the four merits of a direct tax.
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
