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Which of the following taxes is such which does not cause rise in price?
- a)Import duty
- b)Income tax
- c)Octoroi
- d)Sales tax
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which of the following taxes is such which does not cause rise in pric...
The government of India imposes an income tax on taxable income of individuals, Hindu Undivided Families (HUFs), companies, firms, co-operative societies and trusts (identified as body of individuals and association of persons) and any other artificial person. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961. It does not lead to increase in price as it is dependent of income of individuals.
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Which of the following taxes is such which does not cause rise in pric...
None of the taxes listed in the options directly cause an increase in price. Taxes are typically levied on goods or services, and the cost of the tax is passed on to the consumer in the form of higher prices.
Import duty is a tax that is levied on goods imported into a country. It is typically calculated as a percentage of the value of the goods being imported and is added to the cost of the goods. This tax can cause the price of imported goods to increase.
Income tax is a tax that is levied on the income earned by individuals and businesses. It is typically calculated as a percentage of the income earned and is paid by the individual or business that earned the income. Income tax does not directly cause an increase in price because it is not levied on goods or services.
Octoroi is not a commonly used term in taxation. It is possible that you are referring to octroi, which is a tax that is levied on goods that are brought into a city or municipality for use or sale. Octroi can cause the price of goods to increase because it is passed on to the consumer as part of the cost of the goods.
Sales tax is a tax that is levied on the sale of goods and services. It is typically calculated as a percentage of the sale price and is added to the cost of the goods or services. Sales tax can cause the price of goods and services to increase because it is passed on to the consumer as part of the cost.
Therefore, the correct answer is (b) Income tax, as it is the only tax listed that does not directly cause an increase in price.
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Which of the following taxes is such which does not cause rise in pric...
Income tax is the tax on income earned by an individual or a business entity. It is a direct tax and is levied on the income of the taxpayer. The tax does not cause a rise in prices because it is not a tax on goods or services. It is a tax on the income earned by the individual or the business entity, and it does not directly affect the price of goods or services.
Import Duty
Import duty is a tax on goods that are imported into a country. This tax is imposed to protect domestic industries and to generate revenue for the government. The tax on imported goods increases the price of these goods, making them more expensive for consumers.
Octoroi
Octroi is a tax levied by the local government on goods entering a specific area or city. The tax is collected at the entry point of the city or area, such as the city's border, and is based on the value of the goods. This tax increases the price of goods, making them more expensive for consumers.
Sales Tax
Sales tax is a tax on goods and services that are sold to consumers. The tax is imposed by the government and is collected by the seller at the time of sale. The tax increases the price of goods and services, making them more expensive for consumers.
In conclusion, income tax is the only tax among the given options that does not cause a rise in prices. It is a direct tax on income and does not affect the prices of goods or services.
Import Duty
Import duty is a tax on goods that are imported into a country. This tax is imposed to protect domestic industries and to generate revenue for the government. The tax on imported goods increases the price of these goods, making them more expensive for consumers.
Octoroi
Octroi is a tax levied by the local government on goods entering a specific area or city. The tax is collected at the entry point of the city or area, such as the city's border, and is based on the value of the goods. This tax increases the price of goods, making them more expensive for consumers.
Sales Tax
Sales tax is a tax on goods and services that are sold to consumers. The tax is imposed by the government and is collected by the seller at the time of sale. The tax increases the price of goods and services, making them more expensive for consumers.
In conclusion, income tax is the only tax among the given options that does not cause a rise in prices. It is a direct tax on income and does not affect the prices of goods or services.
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Which of the following taxes is such which does not cause rise in price? a)Import duty b)Income tax c)Octoroi d)Sales taxCorrect answer is option 'B'. Can you explain this answer?
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