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Question
An example of a direct tax is ______
Options
Entertainment tax
VAT
Income Tax
Sales tax
MCQ
Fill in the Blanks
Solution
An example of a direct tax is Income Tax
Explanation:
Income tax is a direct tax as tax is imposed on the person whose income is being assessed. Whatever tax is imposed .on the individual is to be paid by the individual himself/herself. The tax burden cannot be shifted to anyone else.
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Liberalisation
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