Direct Taxes Flashcards
1
Q
Hypothecation
A
The dedication of the revenue from a specific tax from a particular expenditure purpose
2
Q
Direct Tax
A
Tax levied on income, wealth and profit. The burden of a direct tax cannot be passed on
3
Q
Progressive tax
A
Tax rate increases as taxable income increases
4
Q
Regressive tax
A
Tax rate decreases as taxable income increases
5
Q
Proportion Tax
A
Same tax on everyone regardless of income
