Multiple choice

What best describes the structure of income tax in India?

  1. Indirect and progressive

  2. Direct and proportional

  3. Direct and progressive

  4. Indirect and proportional

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

Income tax in India is a direct tax, meaning it is paid directly by the individual to the government. It is progressive because the tax rate increases as the taxpayer's income increases.