Question

Identify the type of taxation system that India follows.

• A. Progressive taxation
• B. Regressive taxation
• C. Proportional tax
• D. Flat tax system

Answer 1

The correct option is A Progressive taxation

India follows a progressive tax system. Under a progressive system, high-income earners pay more than low-income earners. Under a regressive tax system, low-income earners pay a higher amount of taxes than high-income earners. Under a proportional tax system, low-, middle-, and high-income earners pay the same tax rate. Proportional tax is also called flat tax.