Match List I with List II
| List I | List II | ||
| A. | Progressive Tax | I.Tax on Imported and Exported goods | |
| B. | Proportional Tax | II.Income Tax | |
| C. | Wealth Tax | III.Tax on Firms | |
| D. | Custom duty | IV.Paper Tax | |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : A-II, B-III, C-IV, D-I
A. Progressive Tax (II. Income Tax): Progressive taxes increase as a percentage of income, meaning higher earners pay a larger share of their income in taxes. Income tax is a classic example of a progressive tax.
B. Proportional Tax (III. Tax on Firms): Proportional taxes take a fixed percentage of the t
ax base, regardless of the amount. Corporate taxes levied on a company's profit can be considered a proportional tax (though some corporate tax structures might have elements of progressivity).
C. Wealth Tax (IV. Paper Tax): Taxes like wealth tax and gift tax in India which carry their significance only on paper and have no significance in terms of revenue yield are called paper taxes.
D. Custom duty (I. Tax on Imported and Exported goods):
| List I | List II | ||
| A. | Progressive Tax | II.Income Tax | |
| B. | Proportional Tax | III.Tax on Firms | |
| C. | Wealth Tax | IV.Paper Tax | |
| D. | Custom duty | I.Tax on Imported and Exported goods | |