Q1. Consider the following:
1. Fringe Benefit Tax
2. Interest Tax
3. Securities Transaction Tax
Which of the above is/are Direct Tax/Taxes?
1. Fringe Benefit Tax
2. Interest Tax
3. Securities Transaction Tax
Which of the above is/are Direct Tax/Taxes?
Explanation
All three taxes--Fringe Benefit Tax (FBT), Interest Tax, and Securities Transaction Tax (STT)--are classified as direct taxes, as they are levied directly on entities or individuals and cannot be passed on to others. Fringe Benefit Tax (FBT): Introduced in 2005 and abolished in 2009, it was imposed on employers for providing fringe benefits to employees. Interest Tax: Levied on the interest income of financial institutions, phased out in the early 2000s. Securities Transaction Tax (STT): Imposed on the purchase or sale of securities on recognized stock exchanges since 2004. These taxes were introduced under the Income Tax Act, 1961, with the intent to simplify and broaden the taxation framework.