Advertisements
Advertisements
Question
Which of the statement is true for income tax?
Options
It is regressive by nature.
It is an example of indirect tax.
Impact and incidence of the tax lies on the same person.
Impact and incidence of the tax lies on the different persons.
Advertisements
Solution
Impact and incidence of the tax lies on the same person.
Explanation:
Income tax is a direct tax, which means that the impact and incidence fall on the same person.
APPEARS IN
RELATED QUESTIONS
The government imposes tax ______.
Monetary policy means regulation of money supply by the monetary authority.
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
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 |
Name any two instruments of Fiscal Policy.
Classify the following type of tax into direct and indirect taxes:
Sales tax
What are progressive taxes.
Explain the term Impact of a tax.
Explain the following with examples:
Progressive tax
Explain briefly two merits of indirect tax.
