Question

Direct tax is called direct because it is collected directly from __________________.

• A. The producers on goods produced
• B. The sellers on goods sold
• C. The buyers of goods
• D. The income earners

Answer 1

The correct option is D The income earners

A direct tax is a tax, the final burden of which is borne by the person on whom it is imposed. Thus, direct tax is called direct tax as it is collected directly from the income earners and the burden of the tax cannot be shifted to different persons.
Hence, D is the correct option.