WBCS.LIVE practice question

Which type of tax is the Corporate Tax levied by the Government of India?

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

Answer options

  1. Indirect Tax
  2. Direct Tax
  3. Value Added Tax
  4. Regressive Tax

Correct answer and explanation

Correct answer: Direct Tax

Explanation: āœ… Correct Answer: B) Direct Tax šŸ“š Explanation: Corporate Tax is a mandatory financial charge levied directly by the central government on the net income or profit of corporate entities operating in India. It is strictly classified as a Direct Tax because the legal incidence and the economic burden of the tax fall on the same corporate entity. This tax cannot be legally shifted to consumers, unlike indirect taxes such as the Goods and Services Tax (GST).