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Which of the following is a direct tax?

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Question

Which of the following is a direct tax?

Options

  • Excise duty

  • GST

  • Income tax

  • Custom duty

MCQ
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Solution

Income tax

Explanation:

Income tax is levied on the income of a person and its burden cannot be shifted; hence it is a direct tax. Excise duty, GST and custom duty are indirect taxes because their burden can be shifted to consumers.

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Chapter 16: Fiscal Policy - TEST YOURSELF QUESTIONS [Page 348]

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Frank Economics [English] Class 12 ISC
Chapter 16 Fiscal Policy
TEST YOURSELF QUESTIONS | Q 2. | Page 348
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