Question

Write a short note on Direct Tax.

Answer 1

If a tax levied on the income or wealth of a person and is paid by that person (or his office) directly to the Government, it is called a direct tax, for example, Income – Tax, Wealth Tax, Capital Gains Tax, Securities Transaction Tax, Fringe Benefits Tax (from 2005), Banking Cash Transaction Tax (for Rs,50,000 and above – from 2005), etc. In India, all direct taxes are levied and administered by the Central Board of Direct Taxes.