Advertisements
Advertisements
Questions
State two differences between income tax and commodity tax.
State two difference between tax on income and tax on a commodity.
Mention two points of distinction between tax on income and tax on commodity.
Advertisements
Solution
| S. No. | Income tax | Commodity tax |
| 1. | Income tax is a direct tax. | Tax on a commodity is an indirect tax. |
| 2. | Tax burden of income tax cannot be shifted to another. | tax burden on a commodity can be shifted wholly or particularly on to its buyers in the form of higher prices. |
APPEARS IN
RELATED QUESTIONS
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Citing reason state the advantage of a direct tax over an indirect tax.
To which tax is this shifting of tax burden relevant?
Briefly explain why direct taxes foster civic consciousness among people.
What is meant by regressive taxation?
State two drawbacks of direct taxes.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Explain the term Incidence of a tax.
Explain how indirect taxes can be made progressive.
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
