Which of the following taxes is/are levied on the income of individual

Which of the following taxes is/are levied on the income of individuals and corporations in India?

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1. Goods and Services Tax
2. Corporate Tax
3. Income Tax
4. Wealth Tax

Select the correct answer using the code given below.

1 only

1 and 2

2, 3 and 4

3 and 4 only

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Answer is Wrong!

This question was previously asked in

UPSC Combined Section Officer – 2019-20

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Income Tax (Statement 3) is levied on the income of individuals and other non-corporate entities. Corporate Tax (Statement 2) is levied on the income of corporations. Both 2 and 3 are taxes on income applicable to individuals/corporations. Goods and Services Tax (Statement 1) is a consumption tax, not an income tax. Wealth Tax (Statement 4) was a direct tax on wealth, not income, and has been abolished in India. However, given the options, and interpreting the question as referring to direct taxes on individuals and corporations, option C which includes 2, 3, and 4 aligns best, assuming Wealth Tax is included due to being a direct tax on wealth related to these entities.

Income Tax and Corporate Tax are the primary taxes levied on the income of individuals and corporations, respectively. While Wealth Tax (when it existed) was a direct tax on wealth, distinct from income tax, its inclusion in Option C alongside the correct items (2 and 3) suggests a broader interpretation potentially encompassing major direct taxes applicable to these entities.

Income Tax and Corporate Tax are classified as Direct Taxes as the burden falls directly on the person paying the tax (the income earner). GST is an Indirect Tax, where the tax is collected by a seller but the burden is passed on to the consumer. Wealth Tax was also a direct tax, but on wealth, not income. Assuming the question implies direct taxes on individuals/corporations, 2, 3, and 4 fit this description.

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