Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:
Which of the following is an example of direct tax?
Options:
Excise duty
Value Added Tax
Wealth tax
Entertainment tax
Correct Answer:
Wealth tax
Explanation:
Wealth tax is levied on the net wealth owned by a person on the valuation date, i.e., 31st March of every year. It is a direct tax.