MANAGEMENT

Detailed explanation-1: -Tax levied directly on the income earned is called as direct tax, for example Income tax is a direct tax. The tax calculation is based on the income slab rates applicable during that financial year.

Detailed explanation-2: -A direct tax is a tax that a person or organization pays directly to the entity that imposed it. Examples include income tax, real property tax, personal property tax, and taxes on assets, all of which are paid by an individual taxpayer directly to the government.

Detailed explanation-3: -Donation inter vivos is subject to donor’s tax while donation mortis causa is subject to estate tax.

Detailed explanation-4: -The Income-tax Act, 1961 is the charging statute of Income Tax in India. It provides for levy, administration, collection and recovery of Income Tax. The Government of India brought a draft statute called the “Direct Taxes Code” intended to replace the Income Tax Act, 1961 and the Wealth Tax Act, 1957.