Which of the following taxes is not a direct tax?

Question

Question

This question was previously asked in

Bihar Police Constable Memory Based Paper (Held On: 01 Oct, 2023 Shift 2)

Answer 1

The correct answer is Sales tax.

Key Points

Sales tax is not a direct tax.
- Sales tax is paid to the government for the sale of goods and services.

Additional Information

A direct tax is one that an individual or organization pays directly to the body that is enforcing it.
Direct taxes are non-transferable to another person or entity.
Estate duty
- It was imposed on the estate of a person which was inherited by him.
- The rate ranged from 4 to 40% of the value of the estate.
- It was imposed and collected by the central government but proceeds were passed on to states.
- It was abolished in March 1985 as the yield was too low.
Gift tax
- Imposed in April 1958.
- Charged and collected every financial year on gifts received during the previous year.
- Again abolished in 1998 due to low yield.
Wealth tax
- Levied on accumulated wealth or property of every individual.
- The tax was abolished in the 2016 budget.