Which of the following is Direct Tax

The correct answer is Income Tax.

Key Points

• Income Tax is a Direct Tax imposed on an individual or entity's income, profits, or earnings.
• Direct Taxes are paid directly to the government by the individual or organization on whom it is imposed.
• Income Tax is progressive in nature, meaning the tax rate increases as income rises.
• This type of tax is non-transferable, meaning the burden of payment cannot be shifted to another party.

Important Points

• Direct taxes such as Income Tax are a major source of revenue for the government and are crucial for funding public services and infrastructure.
• These taxes are typically levied based on income slabs, with exemptions for certain categories such as senior citizens or individuals earning below a specific threshold.

Additional Information

• Sales Tax: Sales Tax is an Indirect Tax levied on the sale of goods and services. The tax burden is shifted to the end consumer.
• Customs Duty: Customs Duty is an Indirect Tax imposed on goods imported and exported across international borders. It is paid by businesses but eventually passed on to consumers.
• Excise Duties: Excise Duties are Indirect Taxes imposed on the manufacture or production of goods within a country. The tax burden falls on the consumer.
• Income Tax: As mentioned earlier, Income Tax is a Direct Tax, paid directly by individuals and organizations to the government.