Question

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

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

Explanation:

When it comes to direct taxes, the individual who bears the tax burden and is responsible for paying it is the same person. The tax liability cannot be transferred to another person.