Multiple choice

Which among the following is a direct tax?

  1. Personal income tax

  2. Excise duty

  3. Sales tax

  4. Service tax

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Direct taxes are paid directly to the government by the individual or entity on whom they are imposed. Personal income tax is levied on individuals' income and paid directly by them, making it a direct tax. Excise duty, sales tax, and service tax are all indirect taxes collected through intermediaries (manufacturers, sellers, service providers) and ultimately borne by consumers.

Keep practicing — related questions