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Question
Which of the statement is true for income tax?
Options
It is regressive by nature.
It is an example of indirect tax.
Impact and incidence of the tax lies on the same person.
Impact and incidence of the tax lies on the different persons.
Solution
Impact and incidence of the tax lies on the same person.
Explanation:
Income tax is a direct tax, which means that the impact and incidence fall on the same person.
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