Question

A direct tax is called direct because it is collected directly from ______.

Options

• The producers on goods produced

• The sellers on goods sold

• The buyers of goods

• The income earners

Answer 1

A direct tax is called direct because it is collected directly from the income earners.

Explanation:-

Direct tax means the tax which is directly imposed on individuals and collected by the government. The burden of tax cannot be shifted to any other person. Here, the income earners are the individuals who pay the direct tax.