Which of the following are included in the category of direct tax in India ? 1. Corporation Tax 2. Tax on Income 3. Wealth Tax 4. Customs Duty 5. Excise Duty Select the correct answer using the codes given below—

In India, taxes are broadly classified into direct and indirect taxes. Direct taxes are those paid directly by an individual or entity to the government and cannot be shifted to others [2]. Corporation Tax (levied on company profits) and Tax on Income (personal income tax) are primary examples of direct taxes administered by the Central Board of Direct Taxes [2]. Wealth Tax was also historically categorized as a direct tax before its abolition [2]. Conversely, Customs Duty (levied on imports/exports) and Excise Duty (levied on manufactured goods) are classified as indirect taxes because their burden is shifted to the end consumer [3]. These are administered by the Central Board of Indirect Taxes and Customs [2]. Therefore, only items 1, 2, and 3 fall under the direct tax category.

Sources

1. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Global Minimum Corporate Tax (GMCT): > p. 172
2. [3] https://www.startupindia.gov.in/content/sih/en/startup-scheme/international/go-to-market-guide/tax-system-india.html