Question : Which of the following taxes is proportional in nature?
Option 1: Capital Gains Tax
Option 2: Income Tax
Option 3: Corporation Tax
Option 4: Goods and Services Tax
Correct Answer: Goods and Services Tax
Solution : The correct answer is Goods and Services Tax .
Indirect taxes are mostly "Proportional" in nature, which means that the tax is levied at a fixed rate as a percentage of the tax base, irrespective of the size of the tax base. On the other hand, direct taxes are progressive, which means that the tax rate increases as the taxable income increases. Goods and Services Tax is an example of a proportional tax since it is an indirect tax.
Result | Eligibility | Application | Selection Process | Cutoff | Admit Card | Preparation Tips
Question : The liability to pay the tax and the actual burden of which of the following taxes lie on two different persons?
Question : Which of the following is an indirect tax?
Question : Which of the following may be classified as a 'Pigouvian tax'?
Question : Which of the following sets belongs to central tax?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile