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Question
The essential feature of a tax.
Options
A compulsory payment
A legal payment
Both Compulsory payment and legal payment.
Neither Compulsory payment nor Legal payment
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Solution
Both Compulsory payment and legal payment.
Explanation:
A tax is both a compulsory payment and a legal payment. It is compulsory because it is mandatory for individuals and businesses and legal because taxes are imposed and collected under the authority of the law.
RELATED QUESTIONS
The following table indicates:
| Tax Base in ₹ | Rate of tax in % |
| 10,000 | 8 |
| 20,000 | 8 |
| 30,000 | 8 |
| 40,000 | 8 |
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.
Define direct tax
Define Indirect tax
Define a degressive tax.
Citing reason state the advantage of a direct tax over an indirect tax.
Classify the following type of tax into direct and indirect taxes:
House tax
Explain the term Impact of a tax.
Explain the following with examples:
Progressive tax
Explain the significance of taxes.
