Advertisements
Advertisements
Questions
Define direct tax
What are direct taxes?
What is meant by direct tax?
Advertisements
Solution 1
Direct taxes refer to taxes that are imposed on the property and income of individuals and companies, and their burden cannot be shifted to another person/entity.
Solution 2
A direct tax is one that is paid by the person on whom it is legally imposed.
APPEARS IN
RELATED QUESTIONS
______ are those taxes which are paid by the same person on whom they have been imposed.
Fiscal policy means public expenditure and tax policy of the government.
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 |
Define fiscal policy.
Differentiate between direct and indirect taxes.
Classify the following type of tax into direct and indirect taxes:
House tax
Give one example of progressive tax.
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
State the four merits of a direct tax.
State three demerits of an Indirect tax.
