Question

(i) With suitable examples, distinguish between Direct Tax and Indirect Tax.

(ii) Responding to the Prime Minister's 'Give it Up Campaign', a large number of Indian families have voluntarily surrendered their cooking gas subsidy. Identify and explain the objective behind this action taken by the Government of India. 

Hint:

Revenue and capital receipts are differentiated on the basis of short-term or long-term. ZED scheme discuss about ptomoting industrial development.

Answer 1

Distinction between Direct Tax and Indirect Tax: 

(ii) Objective of the Action: The government's objective behind the campaign was to ensure targeted subsidy distribution. The initiative aimed at encouraging financially stable households to give up their subsidies so that the benefits could reach poor and underprivileged families who truly need financial assistance for cooking gas.