Question:

Which of the following is a Direct Tax?

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Direct = paid by person earning the income. Indirect = passed on to the buyer.
Updated On: Aug 7, 2025
  • Excise duty
  • Sales tax
  • Income tax
  • None of the above
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The Correct Option is C

Solution and Explanation

Income tax is a direct tax because it is levied directly on an individual’s or entity’s income and cannot be transferred to others. In contrast, taxes like excise duty and sales tax are indirect taxes, passed on to consumers.
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