Multiple Choice Questions on Direct tax is called direct because it is collected directly from ........ for Common University Entrance Test (CUET) Preparation

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Multiple Choice Questions

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

Economics (CUET) Government Budget and Economy
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    Direct tax is called direct because it is collected directly from:

     

    The producers on goods produced.

     

    Incorrect Answer

    The sellers on goods sold.
     

    Incorrect Answer

    The buyers of goods.

     

    Incorrect Answer

    The income earners.

    Correct Answer
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    Explanation:

    Option (4) is correct.
    Explanation: In case of direct tax, the burden of tax and the liability to pay it falls on the same person. The liability to pay the tax cannot be shift on other person.

     

    By: Parvesh Mehta
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