Which of the following is an example of a Direct Tax?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Wealth tax.
- Direct taxes are paid directly to the government and are levied on one's income and profits.
- A wealth tax is a yearly fee calculated as a percentage of an individual's or family's total net worth that applies only to the richest people in the country.