Archive | Direct Taxes

Let us learn about the merits and demerits of direct tax in economics. Merits of Direct Tax: Direct taxes have some important merits: (a) Canon of Ability to Pay Satisfied: Direct tax is imposed in accordance with the ability of taxpayer to pay so that the burden of taxation is distributed among the taxpayers in a just or equitable manner. [...]

Let us make an in-depth study of the merits and demerits of direct taxes. (A) Merits: 1. Equity: A direct tax is an equitable tax. Through it the rich can be made to pay more than the poor. In case of necessity, the poor people can be granted exemption from payment of such taxes. A direct tax is equitable in [...]