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

- This involves indirect taxation where tax is imposed on the production or delivery of goods, not directly collected from individuals.

- Option 2: The sellers on goods sold

- This is typically related to sales tax, which is an indirect tax passed on to consumers. Sellers collect it on behalf of the government.

- Option 3: The buyers of goods

- Buyers pay indirect taxes like VAT or sales tax when purchasing goods, not considered direct taxes.

- Option 4: The income earners

- Direct taxes such as income tax are levied directly on individuals or entities on their earnings or profits.

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