Practicing Success
"Direct tax" is called direct because of which of the following reason? |
Tax is collected directed from the producers Tax is collected directly from the sellers Tax is collected directly on the income of the consumer Tax is directly collected from the buyers of the goods |
Tax is collected directly on the income of the consumer |
A direct tax is a tax that a person or organization pays directly to the entity that imposed it. Examples include income tax, real property tax, personal property tax, and taxes on assets, all of which are paid by an individual taxpayer directly to the government. In the above question, all the other options apart from option 3 are not covered under direct tax system. |