Saved Bookmarks
| 1. |
Giving reasons classify the following into direct tax and indirect tax: (i) Wealth tax, (ii) Entertainment tax and (iii) Income tax, (iv) Capital gain tax. |
|
Answer» Solution :(i) Wealth tax is a direct tax because its LIABILITY to pay tax and burden of tax falls on the same person. (ii) Entertainment tax (like the one included in cinema ticket) is an indirect tax because its burden can be SHIFTED. (III) Income tax is a direct tax because its liability to pay and its burden falls on the same person. (iv) CAPITAL GAIN tax is a direct tax because its impact and incidence lie on the same person. |
|