Home PYQs UPPSC UPPSC MCQs Prelims 2018 (GS Paper I)

Question

Direct Tax Code in India is related to which of the following?

  1. Sales Tax
  2. Income Tax
  3. Excise Tax
  4. Service Tax

Answer:

Option C: Excise Tax

Detailed Solution:

The correct answer is “Excise Tax”.

The Direct Tax Code in India is related to Income Tax. Therefore, the answer is (b) Income Tax.

The Direct Tax Code (DTC) was proposed as a replacement for the existing Income Tax Act in India in 2009. The objective of the DTC was to simplify the tax structure and make it more efficient, transparent, and taxpayer-friendly.

The DTC covers all direct taxes, including income tax, wealth tax, and corporate tax. It aims to streamline tax administration, remove exemptions and deductions, and reduce tax rates. However, the DTC has not yet been implemented and its fate remains uncertain.