Question

Which of the following is not a direct tax?

• A. Gift tax
• B. Wealth Tax
• C. Sales tax
• D. Estate duty

Answer 1

The correct option is C Sales tax

A direct tax is one that cannot be shifted by the taxpayer to someone else. Gift tax is a direct tax.

Gift Tax :

A gift tax is a federal tax applied to an individual giving anything of value to another person. For something to be considered a gift, the receiving party cannot pay the giver full value for the gift, though they may pay an amount less than its full value. It is direct tax.

Wealth Tax :

It is a Direct Tax. The Wealth Tax is taxation related to the net wealth of an individual or a company.

Wealth tax is imposed on the richer section of the society. The intention of doing so is to bring parity among-st the taxpayers.

Sales Tax :

Sales tax is an additional amount of money you pay based on a percentage of the selling price of goods and services that are purchased.

Estate Duty :

Estate duty was a form of tax which was levied on the total value of the property held by an individual calculated at the time of his / her demise. It was payable at the time when the deceased individual's property was passed on to the successors. It is a direct tax.

$\therefore$ From all the given options Sales Tax is not a Direct Tax.