Mention five differences between a direct tax and an indirect tax… - Vidyadip

Question

Mention five differences between a direct tax and an indirect tax.

✓

Answer

A tax is a legal compulsory payment imposed by the government.
Differences between Direct Taxes and Indirect Taxes

Direct Taxes	Indirect Taxes
1. Direct tax is imposed income and wealth of people	1. Indirect tax is imposed on goods and services.
2. Direct tax is paid by the person on whom it is imposed. Hence, shifting of burden is not possible.	2. Indirect tax is paid by the person other than on the whom it is imposed.
3. Direct tax is generally progressive i.e. rate of tax increases with increase in income.	3. Indirect tax is generally regressive i.e., rate of tax decreases with increase in income.
4. Direct tax reduces inequality of income.	4. Its burden falls more on the poor.
5. Income tax is an example of direct tax.	5. GST is an example of indirect tax.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "[4 marks Question-Answer]" from Public Revenue→Public Revenue — all question types→Economics STD 10 question papers→ICSE Board STD 10 question papers→ICSE Board question paper generator→

Similar questions

With the help of a diagram explain the meaning of increase in supply and decrease in supply.

Explain the following functions of the Central Bank:
(i) Fiscal agent of the government.
(ii) Advisor to the government.

Product differentiation is practised in monopolistic competition? Give reasons.

Define public expenditure. Explain two ways by which it promotes economic development. ### How has public expenditure become an important. tool for economic development in recent times?

Explain the different types of price elasticity of demand.###Discuss five cases of elasticity of demand.

Mention five qualities of a good entrepreneur.###Discuss any five important qualities of an entrepreneur.

(a) What is the meaning of cost push inflation?
(b) Explain any three causes of cost push inflation.

Distinguish between qualitative and quantitative measures of credit control. Briefly explain the quantitative credit control policy of the central bank.

Distinguish between movement along a supply curve and shifts of a supply curve.###Using graph distinguish between change in supply and change in quantity supplied.

Describe the various duties of a consumer. ### What are the duties of a consumer? (Any five points) ### In the context of the sudden increase in consumer groups in India due to heightened awareness and instances of exploitation by private traders, what are the key duties and responsibilities that consumers should be mindful of to actively contribute to the consumer movement in the country?