Question

Giving reasons, classify the following as direct and indirect taxes:
(i) IncomeTax
(ii) Goods and Services Tax
(iii) Corporate Tax
(iv) Capital GainsTax

Answer 1

(i) It is a direct tax as its impact and incidence lie on the same person.
(ii) It is an indirect tax as its impact and incidence lie on different persons.
(iii) It is a direct tax as its impact and incidence lie on the same person.
(iv) It is a direct tax as its impact and incidence lie on the same person.