Direct Tax (Noun)
Meaning
A tax paid directly by the person or organization on whom it is levied.
Classification
Nouns denoting possession and transfer of possession.
Examples
- Income tax is a direct tax that individuals pay on their earnings from various sources such as salaries and investments.
- The company paid a significant amount of direct tax on its profits, which reduced its net earnings.
- In many countries, property tax is considered a direct tax as it is paid directly by the property owner.
- The government collects direct tax from individuals and businesses through various means, including tax returns and withholding.
- The new tax policy aims to reduce the burden of direct tax on low-income individuals and small businesses.