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WBCS Preliminary Examination 2021 — General Studies · Question 44 of 200

Q44
Indian EconomyPublic Finance, Budget & Taxation
Which is the Direct Tax in India?
  1. a.VAT
  2. b.GST
  3. c.Wealth Tax
  4. d.Excise Duty

Answer: (C) Wealth Tax

A direct tax is one whose burden cannot be shifted - it is borne by the person on whom it is levied: income tax, corporation tax, wealth tax, gift tax, capital gains tax. Wealth Tax (Wealth Tax Act, 1957) was a direct tax; it was abolished from 2015-16 and replaced by a surcharge on the super-rich. VAT, GST (introduced on 1 July 2017 through the 101st Amendment) and excise duty are indirect taxes, whose burden is passed on to the final consumer. Direct taxes are administered by CBDT and indirect taxes by CBIC.

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