Question : Which of the following is not true for Direct Tax receipts?
Option 1: It is imposed on income and wealth of individual and firms
Option 2: Burden of payment can be shifted
Option 3: In India, these taxes are progressive in nature
Option 4: They are not included in the estimation of national income
Correct Answer:
Burden of payment can be shifted
Solution : The correct answer is (b) Burden of payment can be shifted.
Direct Tax receipts are imposed on the income and wealth of individuals and firms, and the burden of payment generally cannot be shifted to others. Direct taxes are levied directly on the taxpayer, and they are intended to be borne by the individuals or entities on whom they are imposed.




