Q. Which among the following is a Progressive Tax?
Answer: Income tax
Notes: In progressive taxation, the tax liability increases with individual or entity income. This is based on principle of “ability to pay”. Under this system, lowest income people are generally exempted while highest income people pay highest taxes. Income Tax is thus an example of progressive tax. Progressive taxation results in redistribution of income from rich to poor.

This question is part of 40000+ General Studies MCQ Series Course on GKToday Android app. Question Number: 3 in 42. India's Tax Regime in above course in App.