MANAGEMENT

Detailed explanation-1: -Definition: Progressive tax is the taxing mechanism in which the taxing authority charges more taxes as the income of the taxpayer increases. A higher tax is collected from the taxpayers who earn more and lower taxes from taxpayers earning less.

Detailed explanation-2: -A progressive tax is characterized by a more than proportional rise in the tax liability relative to the increase in income, and a regressive tax is characterized by a less than proportional rise in the relative burden.

Detailed explanation-3: -No, income tax in India is progressive in nature because tax rate increases with increase in income. Q. Indirect taxes are regressive in nature. How can they be made progressive?

Detailed explanation-4: -Progressive and regressive tax A progressive tax is a tax where the tax rate increases with increase in the taxpayer’s income. Here, individual who get high income pay higher proportion of there income as tax. On the other hand, in the case of regressive tax, tax rate decreases with increase in income.