ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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regressive tax
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proportional tax
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lending tax
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income tax
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Detailed explanation-1: -Definition: Proportional tax is the taxing mechanism in which the taxing authority charges the same rate of tax from each taxpayer, irrespective of income. This means that lower class, or middle class, or upper class people pay the same amount of tax.
Detailed explanation-2: -GST is an example of proportional tax where everyone pays the same tax irrespective of the income group.
Detailed explanation-3: -flat tax-Another term for a proportional tax. proportional tax-A tax that takes the same percentage of income from all income groups. regressive tax-A tax that takes a larger percentage of income from low-income groups than from high-income groups.
Detailed explanation-4: -Under a regressive tax system, low-income earners pay a higher amount of taxes than high-income earners. Under a proportional tax system, low-, middle-, and high-income earners pay the same tax rate. Proportional tax is also called flat tax.
Detailed explanation-5: -Income between ₹5 and ₹7.5 lakh, reduced to 10% tax from 20% Income between ₹7.5 lakh to ₹10 lakh, reduced to 15% from the current 20% Income between ₹10 lakh to ₹12.5 lakh, reduced to 20% from the current 30% Income between ₹12.5 lakh to ₹15 lakhs, reduced to 25% from the current 30%