Advertisements
Advertisements
Question
Wealth tax is an example of:
Options
Direct tax
Indirect tax
Proportional tax
Degressive tax
Advertisements
Solution
Direct tax
Explanation:
Wealth tax is imposed on an individual's wealth, and that individual is required to pay the tax. A direct tax is one in which both the impact and the burden fall on the same individual.
APPEARS IN
RELATED QUESTIONS
______ is an example of commercial revenues.
The following table indicates:
| Tax Base in ₹ | Rate of tax in % |
| 10,000 | 8 |
| 20,000 | 8 |
| 30,000 | 8 |
| 40,000 | 8 |
Which of these taxes is most likely to be progressive?
Match the following:
| Column I | Column II | ||
| A. | Direct tax | (i) | Tax rate increases with tax base |
| B. | Indirect tax | (ii) | Tax rate remains constant |
| C. | Proportional tax | (iii) | Imposed on goods and services |
| D. | Progressive tax | (iv) | Impact and incidence lie on the same person |
Define Indirect tax
Citing reason state the advantage of a progressive tax over proportional tax.
Briefly explain why direct taxes foster civic consciousness among people.
State three demerits of an Indirect tax.
With reference to the taxation policy.
Differentiate between progressive and regressive taxes giving an example for each.
Citing reasons state the superiority of Progressive tax over regressive tax.
