Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

What do you understand by the term "Direct tax"?

Options:

Taxes on the production activity 

Taxes on property of individuals

Taxes on the incomes of individuals

Taxes on the sale of a commodity

Correct Answer:

Taxes on the incomes of individuals

Explanation:

There are two types of taxes: direct tax and indirect tax. Direct taxes consist of taxes on incomes of individuals, as well as profits of business enterprises.