Advertisements
Advertisements
Question
Explain the principles of taxation.
Solution
Following are the principles of taxation:
- Equity or Equality: Every person will pay the taxes to the government in proportion to his ‘ability to pay’. It means rich people should pay more tax compared to the poor.
- Certainty: The taxpayer should know in advance how much tax he has to pay, at what time he has to pay the tax, and in what form the tax is to be paid to the government.
- Convenience: Every tax should be levied in such a manner and at such a time that it becomes convenient to the taxpayer.
- Economy: The cost of tax collection should be the minimum. If a major portion of the tax proceeds is spent on the tax collection itself, then such a tax cannot be considered as a good tax.
APPEARS IN
RELATED QUESTIONS
Identify and explain the following concept:
Ashok paid the tax on his income and property.
Explain essential characteristics of tax.
Identify and explain the concept from the given illustration:
Bhavesh had to pay less income tax when his income was low, but now he has to pay more income tax due to an increase in income.
Identify the right group of pairs from the given options.
| i) | Direct tax | a) | Non-tax revenue |
| ii) | Indirect tax | b) | Inflation |
| iii) | Fees and Fines | c) | GST |
| iv) | Surplus budget | d) | personal income tax |
Identify the right group of pairs from the given options.
| i) Direct tax | a) Non-tax revenue |
| ii) Indirect tax | b) Inflation |
| iii) Fees and Fines | c) GST |
| iv) Surplus budget | d) Personal income tax |
Identify the right group of pairs from the given options.
| i) Direct tax | a) Non-tax revenue |
| ii) Indirect tax | b) Inflation |
| iii) Fees and Fines | c) GST |
| iv) Surplus budget | d) Personal income tax |
| i) | Direct tax | a) | Non-tax revenue |
| ii) | Indirect tax | b) | Inflation |
| iii) | Fees and Fines | c) | GST |
| iv) | Surplus budget | d) | Personal income tax |
Identify the right group of pairs from the given options.
| i) Direct tax | a) Non-tax revenue |
| ii) Indirect tax | b) Inflation |
| iii) Fees and Fines | c) GST |
| iv) Surplus budget | d) Personal income tax |
Identify the right group of pairs from the given options.
| i) | Direct tax | a) | Non- tax revenue |
| ii) | Indirect tax | b) | Inflation |
|
iii) |
Fees and Fines |
c) | GST |
| iv) | Surplus budget | d) | Personal income tax |
Identify the right group of pairs from the given options.
| i) | Direct tax | a) | Non-tax revenue |
| ii) | Indirect tax | b) | Inflation |
| iii) | Fees and Fines | c) | GST |
| iv) | Surplus budget | d) | Personal income tax |
Identify the right group of pairs from the given options.
| i) | Direct tax | a) | Non-tax revenue |
| ii) | Indirect tax | b) | Inflation |
| iii) | Fees and Fines | c) | GST |
| iv) | Surplus budget | d) | Personal income tax |
Identify the right group of pairs from the given options.
| i) Direct tax | a) Non-tax revenue |
| ii) Indirect tax | b) Inflation |
| iii) Fees and Fines | c) GST |
| iv) Surplus budget | d) Personal income tax |
