Indian Economy

Which of the following are included in the category of Direct Tax in India?

  1. Corporation Tax
  2. Tax on Income
  3. Wealth Tax
  4. Customs Duty
  5. Excise Duty

Select the correct answer using the code given below

  1. 2 and 3 only
  2. 1, 2 and 3
  3. 1, 2 , 4 and 5
  4. 1, 3, 4 and 5

Answer

A tax that is paid directly by an individual or organization to the imposing entity is direct tax.

Indirect Tax is a tax that increases the price of a good so that consumers are actually paying the tax by paying more for the products. Indirect taxes include service tax, excise, customs.

The correct option is B.