Question

State Government imposes a monthly tax on the salary of all the employees. The tax amount varies according to the income slab. The Central Government also imposes tax on the same income, which is known as the income tax. This is against the theory of taxation.

Which of the following is a conclusion which can be drawn from the facts stated in the above paragraph?

• A. A regular collection, irrespective of the income slab, by the Central Government is the income tax.
• B. Income tax should not vary according to the income slabs.
• C. Tax should be imposed only once on an individual.
• D. It’s up to an individual to pay tax or not.

Answer 1

The correct option is C

Tax should be imposed only once on an individual.

Tax should be imposed only once on an individual.