12th Class Economics Solved Paper - Economics 2017 Outside Delhi Set-I

  • question_answer
    Distinguish between direct taxes and indirect taxes. Give an example of each.

    Answer:

    Difference between direct and indirect taxes:
    Direct Tax Indirect tax
    (1) When liability of paying a tax and the burden of that tax fall on the same person, the tax is called a direct tax. (1) When liability of paying tax in on one person but the burden of that tax falls on other person. The tax is called an indirect tax.
    (2) The burden of direct tax cannot be shifted on to the others. (2) The burden of indirect tax can be shifted on to the others.
    (3) Example are-income tax, corporate tax, gift tax, etc. (3) Example are-sales tax, custom duty, service tax, etc.


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