MANAGEMENT

Detailed explanation-1: -Proportional tax, also referred to as a flat tax, affects low-, middle-, and high-income earners relatively equally. They all pay the same tax rate, regardless of income.

Detailed explanation-2: -The ability-to-pay principle The most suitable taxes from this standpoint are personal levies (income, net worth, consumption, and inheritance taxes). Historically there was common agreement that income is the best indicator of ability to pay.

Detailed explanation-3: -Income Tax: This is the tax that is levied on the annual income or the profits which is directly paid to the government. Everyone who earns any kind of income is liable to pay income tax. For individuals below 60 years of age, the tax exemption limit is Rs. 2.5 lakh per annum.

Detailed explanation-4: -Taxation is regressive when their rate goes up depending on the resources of the person affected. The taxing power of provinces, municipalities and cities precede from a constitutional grant. Levying of local government taxes should be exercise only by the legislative branch of the local government.