Which among the following is a Progressive Tax?
The correct answer is the Income-tax.
- A progressive tax is directly related to the taxpayer's ability to pay.
- Every year, we have to pay a fixed portion of our income to the central government in the form of income tax.
Key Points
- As per the rule of the central government for Income tax, a certain tax is applicable on the income of all people as per slab.
- Every business and person is supposed to pay the tax and the return is to be submitted every year.
- Total funds collected through tax are used by the government for services as well as to fulfill the requirements for the country's development.
Additional Information
- 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.
