Question

Giving reasons , classify the following as direct and Indirect taxes :
(i) Income Tax
(ii) Goods and Services Tax
(iii) Corporate Tax
(iv) Capital Gains Tax

Answer 1

(i) It is a direct tax as its impact and incidence lie on the same person.
(ii) It is an indirect tax as its impact and incidence lie on different persons.
(iii) It is direct tax as its impact and incidence lie on the same person.
(iv) It is a direct tax as its impact and incidence lie on the same person .