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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Income tax is governed by the CBDT in India.
Reason (R): Income tax is a Indirect tax.
- a)Both A and R are true and R is the correct explanation of A
- b)Both A and R are true, but R is not the correct explanation of A
- c)A is true, but R is false
- d)A is false, but R is true
Correct answer is option 'C'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled a...
The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of the Board in their ex-officio capacity also function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes.
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Direction: In the questions given below are two statements labelled a...
Assertion (A): Income tax is governed by the CBDT in India.
Reason (R): Income tax is an indirect tax.
Explanation:
The given assertion states that income tax is governed by the CBDT (Central Board of Direct Taxes) in India. The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963. It is responsible for the administration of direct taxes in India, including income tax.
The reason provided states that income tax is an indirect tax. However, this reason is incorrect. Income tax is actually a direct tax, not an indirect tax. Direct taxes are imposed directly on individuals or entities, while indirect taxes are imposed on the production, sale, or consumption of goods and services.
Direct Taxes:
Direct taxes are levied directly on the income, wealth, and profits of individuals and corporations. These taxes are paid directly to the government by the taxpayer. Examples of direct taxes include income tax, corporate tax, wealth tax, and capital gains tax. Income tax is one of the most significant direct taxes in India, and it is levied on the income earned by individuals and entities.
Indirect Taxes:
Indirect taxes, on the other hand, are levied on the production, sale, or consumption of goods and services. These taxes are not directly paid by the individuals or entities on whom they are imposed but are passed on to the consumers through the prices of goods and services. Examples of indirect taxes include goods and services tax (GST), excise duty, customs duty, and sales tax.
Conclusion:
Based on the explanation above, it can be concluded that Assertion (A) is true as the CBDT is responsible for governing income tax in India. However, Reason (R) is false as income tax is a direct tax and not an indirect tax. Therefore, the correct answer is option 'C' - A is true, but R is false.
Reason (R): Income tax is an indirect tax.
Explanation:
The given assertion states that income tax is governed by the CBDT (Central Board of Direct Taxes) in India. The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963. It is responsible for the administration of direct taxes in India, including income tax.
The reason provided states that income tax is an indirect tax. However, this reason is incorrect. Income tax is actually a direct tax, not an indirect tax. Direct taxes are imposed directly on individuals or entities, while indirect taxes are imposed on the production, sale, or consumption of goods and services.
Direct Taxes:
Direct taxes are levied directly on the income, wealth, and profits of individuals and corporations. These taxes are paid directly to the government by the taxpayer. Examples of direct taxes include income tax, corporate tax, wealth tax, and capital gains tax. Income tax is one of the most significant direct taxes in India, and it is levied on the income earned by individuals and entities.
Indirect Taxes:
Indirect taxes, on the other hand, are levied on the production, sale, or consumption of goods and services. These taxes are not directly paid by the individuals or entities on whom they are imposed but are passed on to the consumers through the prices of goods and services. Examples of indirect taxes include goods and services tax (GST), excise duty, customs duty, and sales tax.
Conclusion:
Based on the explanation above, it can be concluded that Assertion (A) is true as the CBDT is responsible for governing income tax in India. However, Reason (R) is false as income tax is a direct tax and not an indirect tax. Therefore, the correct answer is option 'C' - A is true, but R is false.
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer?.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer?.
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Income tax is governed by the CBDT in India.Reason (R): Income tax is a Indirect tax.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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