Tax Structure in India - Free MCQ Practice Test with solutions, B Com Goods

Direct taxes are less susceptible to evasion : is incorrect

Yes, stating that direct taxes are less susceptible to evasion is incorrect. In fact, direct taxes, like income tax, can sometimes be more susceptible to evasion compared to indirect taxes like sales tax. This is because direct taxes often depend on individuals and businesses accurately reporting their own income and financial status, which provides more opportunities for underreporting or misreporting income. Indirect taxes, on the other hand, are collected at the point of sale and are harder to evade since they are automatically added to the price of goods and services.