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प्रश्न
Differentiate between progressive taxation and proportional taxation.
Distinguish between proportional and progressive taxation
Distinguish between proportional and progressive taxation. Give examples.
उत्तर
Progressive Taxation | Proportional Taxation |
When the rate of tax rises as the taxpayer's income rises, the tax is said to be progressive. | A proportionate tax is one in which the tax rate remains constant regardless of income fluctuations. |
High-income groups are taxed more heavily under this system, and vice versa. | This method of taxation applies the same percentage of tax to all income classes. |
Examples: Flat income tax of 10% across all income levels. |
Examples: Income tax where 10% is charged on income up to ₹ 5 lakhs, 20% on ₹ 5-10 lakhs, and 30% above ₹ 10 lakhs. |
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