Multiple choice

Consider the following:

  1. Fringe Benefits Tax
  2. Interest Tax
  3. Securities Transaction Tax

Which of the above is/are direct tax(es)?

  1. 1 only

  2. 1 and 3

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Fringe Benefits Tax(FBT) was the tax applied to most, although not all, fringe benefits. A new tax was imposed on employers by India’s Finance Act 2005 and was introduced for the financial year commencing April 1, 2005. The Fringe Benefit Tax was abolished in the Finance Bill of 2009. Securities Transaction Tax (STT) is the tax payable on the value of taxable securities transaction. STT was introduced in India by the 2004 budget and is applicable with effect from 1st October 2004. Interest Tax is a special tax imposed on interest accrued in specified cases. 

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