WBCS.LIVE practice question

Which is the Direct Tax in India?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. VAT
  2. GST
  3. Wealth Tax
  4. Excise Duty

Correct answer and explanation

Correct answer: Wealth Tax

Explanation: āœ… Correct Answer: C. Wealth Tax šŸ“š Explanation: A direct tax is one that is paid directly by an individual or organization to the government. 'Wealth Tax' is a classic example, as it is levied on the total value of assets owned by a person. Other taxes like GST or Excise Duty are indirect because they are collected through businesses and passed on to the consumer. Although Wealth Tax was abolished in 2015, it remains the standard textbook answer for this category.