GENERAL KNOWLEDGE

Detailed explanation-1: -India follows a progressive tax system. Under a progressive system, high-income earners pay more than low-income earners. Under a regressive tax system, low-income earners pay a higher amount of taxes than high-income earners.

Detailed explanation-2: -A taxpayer pays a direct tax to a government for different purposes, including real property tax, personal property tax, income tax or taxes on assets, FBT, Gift Tax, Capital Gains Tax, etc.

Detailed explanation-3: -India follows the progressive tax slab rate system for individual taxpayers, where the tax rate is determined based on varied factors.

Detailed explanation-4: -Direct taxes are levied on the total income of the taxpayers. Therefore, taxpayers with higher income pay more tax while taxpayers earning less pay lower to no taxes. This makes direct taxation equal and just for the majority of the Indian population.