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Q.

Which of the following is a direct tax?


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a

Exclusive

b

Sales Tax

c

Income Tax

d

None of these 

answer is C.

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Detailed Solution

A direct tax is one that is levied on the payer's income or earnings rather than on the purchase of goods or services.
A direct tax is paid directly to the authority imposing it by an individual or organisation.
A taxpayer may, for example, pay direct taxes to the government for real estate taxes, personal property taxes, income taxes, or asset taxes.
As a result, income tax is a direct tax.
Hence, option 3 is correct.
 
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