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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 |
पर्याय
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.
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संबंधित प्रश्न
Identify the tax which is most likely to faster civic conciousness.
Which of the statement is true for income tax?
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 |
State two objectives of fiscal policy.
Citing reason state the advantage of a direct tax over an indirect tax.
What is meant by regressive taxation?
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
Explain briefly two merits of indirect tax.
