Question:
Which of the following belong to the category of direct tax:
Which of the following belong to the category of direct tax:
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Direct tax = taxpayer pays directly (no shifting). Indirect tax = burden shifted to consumer.
Updated On: Oct 30, 2025
- Goods and Services Tax
- Excise duty and customs duty
- Income tax and gift tax
- All of the above
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The Correct Option is C
Solution and Explanation
Step 1: Understanding direct vs indirect tax.
- Direct tax: Paid directly by the taxpayer to the government, e.g., Income Tax, Gift Tax, Wealth Tax.
- Indirect tax: Collected through intermediaries, e.g., GST, Excise, Customs.
Step 2: Analysis of options.
- (A) GST: Indirect tax.
- (B) Excise and Customs: Indirect taxes.
- (C) Income tax and Gift tax: Correct, both are direct taxes.
- (D) All of the above: Wrong, because only (C) fits the category.
Step 3: Conclusion.
Only Income Tax and Gift Tax are direct taxes among the given options.
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