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प्रश्न
State the difference between income tax and expenditure tax.
उत्तर
| S. No. | Aspect | Income Tax | Expenditure Tax |
| 1. | Tax Base | Based on the income of the individual or corporation. | Based on what an individual or entity spends. |
| 2. | What is Taxed | Earnings include salaries, corporate profits, and investment income. | Amount spent on consumption or specific expenses. |
| 3. | Purpose | Income tax encourages saving and investing. | Encourages savings by taxing spending, not income. |
| 4. | Common Examples | Individual income tax, corporate tax. | Some countries have expenditure taxes like luxury tax. |
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संबंधित प्रश्न
______ are those taxes which are paid by the same person on whom they have been imposed.
The government imposes tax ______.
Instruments of fiscal policy is:
Identify the tax which is most likely to faster civic conciousness.
Which of the statement is true for income tax?
Read the following statements carefully and choose the correct alternative:
Assertion (A): Income tax is a direct tax.
Reason (R): GST is an indirect tax.
Distinguish between fiscal policy and monetary policy.
Classify the following type of tax into direct and indirect taxes:
Income tax
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
Explain briefly two merits of indirect tax.
