Question : Which of the following is an example of direct tax?
Option 1: Escheat
Option 2: Income Tax
Option 3: Custom Duty
Option 4: Goods and Services Tax
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Correct Answer: Income Tax
Solution : The correct option is Income Tax .
It is a tax imposed on individuals or entities in respect of the income or profits earned by them. In India, income tax, corporation tax, property tax, and gift tax are the most prevalent types of direct taxes. Furthermore, the ability of a person or entity to pay is the basis for direct taxation in India.
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