Consider the following: 1. Fringe Benefit Tax 2. Interest Tax 3. Securities Transaction Tax Which of the above is/are Direct Tax/Taxes ?

Direct taxes are those paid directly to the government by the person on whom they are imposed (incidence and collection on same person) [1]. Fringe Benefit Tax (FBT) was levied on employers for benefits provided to employees and was therefore a direct levy on the provider of benefits. Securities Transaction Tax (STT) is collected on transactions by buyers and sellers on recognised exchanges and is treated as a direct tax levied on the transacting parties. Interest Tax historically was levied directly on the recipient (typically companies) on interest income and so also qualifies as a direct tax. Hence all three — FBT, Interest Tax and STT — are direct taxes (option 4).

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Taxes can be classified in several ways: > p. 167