Direct Taxes

Question 1

Hypothecation

Answer 1

The dedication of the revenue from a specific tax from a particular expenditure purpose

Question 2

Direct Tax

Answer 2

Tax levied on income, wealth and profit. The burden of a direct tax cannot be passed on

Question 3

Progressive tax

Answer 3

Tax rate increases as taxable income increases

Question 4

Regressive tax

Answer 4

Tax rate decreases as taxable income increases

Question 5

Proportion Tax

Answer 5

Same tax on everyone regardless of income