WBCS.LIVE practice question

Which of the following is a direct tax in India?

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

Answer options

  1. GST
  2. Customs Duty
  3. Personal Income Tax
  4. Excise Duty

Correct answer and explanation

Correct answer: Personal Income Tax

Explanation: āœ… Correct Answer: (C) Personal Income Tax šŸ“š Explanation: A direct tax is a tax that is paid directly by an individual or organization to the imposing entity. Personal Income Tax is the classic example, where the burden of the tax cannot be shifted to someone else. In contrast, GST, Customs Duty, and Excise Duty are indirect taxes, where the tax is collected by an intermediary (like a retailer) from the person who bears the ultimate economic burden of the tax (the consumer).