Which of the following types of direct tax collection increased as of 10 February 2023 budget?
- AOption (a)
Personal income tax
- BOption (b)
Octroi duties
- COption (c)
Corporate tax
- DOption (d)
Commercial tax
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Correct answer
Personal income tax
Why this answer is correct
The correct answer is Personal income tax.
Key Points
- Personal income tax is a type of direct tax levied by the government on the income of individuals and entities.
- The collection of personal income tax saw an increase as per the 10 February 2023 budget.
- This increase can be attributed to various economic factors such as higher earnings, improved compliance, and broader tax base.
- Personal income tax forms a significant portion of the revenue collected by the government, which is used for public welfare and development projects.
Additional Information
- Personal Income Tax
- It is a direct tax that individuals or entities pay on their income to the government.
- Income tax rates and slabs are determined by the government and can vary based on the amount of income earned.
- In most countries, including India, individuals are required to file an annual income tax return detailing their earnings and taxes due.
- Personal income tax is used by the government to fund various public services and infrastructure projects.
- Octroi Duties
- Octroi is a local tax collected on various goods entering a municipality or any specific area.
- It was a common form of taxation in India but has largely been abolished and replaced by other forms of indirect taxation.
- Corporate Tax
- Corporate tax is a direct tax imposed on the net income or profit of corporations and other business entities.
- The tax rate for corporations is usually different from that for individuals.
- Corporate tax is a significant source of revenue for the government.
- Commercial Tax
- Commercial tax is a broad term that can include various types of taxes levied on commercial activities.
- This can include sales tax, value-added tax (VAT), and goods and services tax (GST).
- Commercial taxes are typically indirect taxes collected by the government.