Q. Consider the following:
- Income Tax
- Corporate Tax
- Securities Transaction Tax (STT)
Which of the above is/are considered a form of direct tax in India?
Answer:
1, 2 and 3
Notes:
- Income Tax is levied on individuals and entities based on their earnings, serving as a source of revenue for the government.
- Corporate Tax is imposed on the profits of companies, contributing to public finances and economic stability.
- Securities Transaction Tax (STT) is charged on transactions in the stock market, aimed at regulating trading activities and generating revenue.
All three taxes are classified as direct taxes since they are paid directly to the government based on income or profit.