Question

Which of the following is Direct tax?

• A. Income tax
• B. Custom duty
• C. CENVAT
• D. Sales tax

Answer 1

The correct option is A Income tax

Direct tax is the tax which is paid directly to the government. It is the tax where the burden cannot be shifted to another person. It is to be paid directly by the individual on whom it is imposed. Hence, income tax is a direct tax because it is imposed on the individual.