Advertisements
Advertisements
Question
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.
Options
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Advertisements
Solution
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
APPEARS IN
RELATED QUESTIONS
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
Distinguish between fiscal policy and monetary policy.
Define Indirect tax
Citing reason state the advantage of a progressive tax over proportional tax.
What is meant by regressive taxation?
Give one example of progressive tax.
Explain the term proportional taxation.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
State the four merits of a direct tax.
Explain the term Impact of a tax.
