Tag: social science

Personal Income Tax is a direct tax because the burden cannot be shifted to another person. Excise, Sales, and Service taxes are all indirect taxes.

Estate Duty was a tax on the estate of a deceased person and was abolished in India in 1985. The other options listed are either still active or are categories of tax.

Income Tax is a direct tax levied on the income earned by individuals, firms, or companies during a financial year.

Direct taxes are generally progressive and based on income. Differentiating rates based on luxury versus necessity is a feature commonly associated with indirect taxes (like GST/VAT), not direct taxes.

Sales tax is an indirect tax because it is collected by the seller from the buyer at the point of sale. Gift tax, Wealth tax, and Estate duty are direct taxes.

High taxes on demerit goods like tobacco and liquor are often referred to as 'sin taxes'. Their primary purpose is to discourage consumption, which is a social objective.

Gift Tax was abolished in India in 1998. While Wealth Tax was also abolished later, Gift Tax is the correct answer in the context of common historical tax reforms.

Entertainment tax is a state-level tax in India. Corporate tax, Income tax, and Customs duties are levied by the Central Government.

Gift Tax is a direct tax, as it is levied on the donor or recipient directly. Sales Tax, Excise Duty, and Custom Duty are all indirect taxes.

Corporate income tax is typically levied at a flat rate on the profits of a company, whereas personal income tax uses a progressive slab system.