Question

Which of the following is not a part of direct tax?

• A. Wealth tax
• B. Excise duty
• C. Profit tax
• D. Income tax

Answer 1

Answer: (B)

Excise duty

A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to any other person or group.

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.

Excise duty :

Excise duty is a form of tax imposed on goods for their production, licensing and sale.

Excise Duty is a form of indirect tax which is generally collected by a retailer or an intermediary from its consumers and then paid to the government.

Profit tax :

Profit tax is the amount of taxes on profits paid by the business.It is a direct tax.

Income Tax :

Income Tax is a tax you pay directly to the government basis your income or profit.

$\therefore$ Excise duty is not a direct tax.