Direct and Indirect Taxes — Prelims Questions

Consider the following statements about direct and indirect taxes in India: 1. Direct taxes can be shifted from the taxpayer to another person 2. Indirect taxes are generally progressive in nature 3. GST is an example of indirect tax 4. Income tax follows the principle of ability to pay Which of the statements given above are correct?

Which of the following constitutional articles specifically deals with the distribution of tax revenues between the Centre and States? 1. Article 268 - Taxes levied by Union but collected and appropriated by States 2. Article 269 - Taxes levied and collected by Union but assigned to States 3. Article 270 - Taxes levied and collected by Union but distributed between Union and States 4. Article 271 - Surcharge on certain duties and taxes for purposes of Union

The concept of 'tax incidence' in the context of direct and indirect taxes refers to:

Consider the following pairs: Tax Type : Constitutional Provision 1. Income Tax : Entry 82, Union List 2. Agricultural Income Tax : Entry 46, State List 3. Customs Duty : Entry 83, Union List 4. Entertainment Tax : Entry 62, State List Which of the pairs given above are correctly matched?

Which of the following best explains why indirect taxes are considered regressive?