Question

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.

Answer 1

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.