Direct tax is called direct because it is collected directly from ........

Direct tax is called direct because it is collected directly from:

The producers on goods produced

The sellers on goods sold

The buyers of goods

The income earners

- Option 1: The producers on goods produced

- Indirect taxes like excise duties are collected from producers based on goods produced. Not a direct tax.

- Option 2: The sellers on goods sold

- Indirect taxes like sales tax are collected from sellers. Not a direct tax.

- Option 3: The buyers of goods

- Indirect taxes like Value Added Tax (VAT) are collected from buyers on goods purchased. Not applicable here.

- Option 4: The income earners

- Direct taxes like income tax are collected from individuals based on their earnings.

Option 4 is the correct answer: The income earners.

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