Question:
Which of the following is an example of direct tax?
Which of the following is an example of direct tax?
Show Hint
Ask: “Can the payer pass it on by charging a higher price?” If yes, it’s usually an \textbf{indirect} tax.
Updated On: Sep 1, 2025
- Sales tax
- Customs duty
- Individual income tax
- Excise tax
Show Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Definition. A direct tax is borne and paid by the same person; the liability cannot be shifted (e.g., income tax, wealth tax). Indirect taxes can be shifted to others through prices (e.g., sales/GST, customs, excise).
Step 2: Evaluate options. Sales tax, customs duty, and excise are indirect; individual income tax is direct.
Final Answer: (C) Individual income tax
Step 2: Evaluate options. Sales tax, customs duty, and excise are indirect; individual income tax is direct.
Final Answer: (C) Individual income tax
Was this answer helpful?
0
0
Top GATE XH-C1 Public Economics Questions
- An income tax system is considered progressive if the average tax rate rises with income. Consider an income tax schedule: $T=p+tY$, where $T$ denotes the tax liability, $p$ is a constant, $t$ is the constant marginal tax rate, and $Y$ is the income. For this tax schedule to be progressive, the value of $p$
- Which of the following statements is correct about the Fourteenth Finance Commission?
- The emission of greenhouse gases is an example of “bads” that are
- Among the following, who first proposed that internal government debt does not create a burden for the future generation?
- IndiaSMart is a retail shop that accepts either a Rupay credit card, or a Visa credit card. 31 percent of IndiaSMart’s customers carry a Rupay credit card, 44 percent of its customers carry a Visa credit card, while 18 percent of its customers carry a Rupay credit card as well as a Visa credit card. What is the probability that a customer carries at least one of the two, i.e. either a Rupay or a Visa credit card?
View More Questions
Top GATE XH-C1 Indian Public Finance Questions
- An income tax system is considered progressive if the average tax rate rises with income. Consider an income tax schedule: $T=p+tY$, where $T$ denotes the tax liability, $p$ is a constant, $t$ is the constant marginal tax rate, and $Y$ is the income. For this tax schedule to be progressive, the value of $p$
- Which of the following statements is correct about the Fourteenth Finance Commission?
- The emission of greenhouse gases is an example of “bads” that are
- Among the following, who first proposed that internal government debt does not create a burden for the future generation?
- IndiaSMart is a retail shop that accepts either a Rupay credit card, or a Visa credit card. 31 percent of IndiaSMart’s customers carry a Rupay credit card, 44 percent of its customers carry a Visa credit card, while 18 percent of its customers carry a Rupay credit card as well as a Visa credit card. What is the probability that a customer carries at least one of the two, i.e. either a Rupay or a Visa credit card?
View More Questions
Top GATE XH-C1 Questions
- Amma's tone in the context of the given passage is that of :
For Amma, the difference between men and women was a kind of discrimination and inequality; she felt strongly about women's rights but was not familiar with concepts like gender and patriarchy. She would have dismissed Betty Friedan because she was predominantly dealing with the problems of white middle-class women in the United States. Amma, and women of her generation, could de-link the oppression of women from the wider struggle for the liberation of human beings from class exploitation and imperialism. So Amma continued to play her role as mother and wife, but would often complain: 'I am a doormat on which everyone wipes their emotional dirt off". - Fill in the blanks by choosing the correct sequence for the following passage:
I am wearing for the first time some (i)_____ that I have never been able to wear for long at a time, as they are horribly tight. I usually put them on just before giving a lecture. The painful pressure they exert on my feet goads my oratorical capacities to their utmost. This sharp and overwhelming pain makes me sing like a nightingale or like one of those Neapolitan singers who also wear (ii)_______ that are too tight. The visceral physical longing, the overwhelming torture provoked by my (iii)_______ forces me to extract from words distilled and sublime truths, generalized by the supreme inquisition of the pain my (iv)_______ suffer. - The appropriate synonym for the word ‘ignite' in the following passage will be :
Spirituality must be integrated with education. Self-realization is the focus. Each one of us must become aware of our higher self. We are links of a great past to a grand future. We should ignite our dormant inner energy and let it guide our lives. The radiance of such minds embarked on constructive endeavor will bring peace, prosperity and bliss to this nation. - Which of the following sentences is punctuated correctly ?
- Fill in the blanks with the correct combination of tenses for the given sentence :
Darwin's work (i)_______ a related effect that (ii) ________ influenced the development of environmental politics - a 'decentering' of the human being.
View More Questions