Multiple choice

Which of the following types of tax is equitable in nature in India?

  1. Income tax

  2. Sales tax

  3. Excise duty

  4. None of these
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A Correct answer
Explanation

It is income tax. The rate of income tax increases with the increase in income in India. Hence, the poor have to pay no income tax and the rich have to pay high rate of tax. Hence, it is equitable in nature in India.

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