Which of the following is classified as a direct tax?

The correct answer is Wealth tax.

Key Points

• A Direct tax is paid by an individual or organization to the entity that levied the tax.
• The Central Board of Direct Taxes deals with matters related to levying and collecting Direct Taxes and the formulation of various policies related to direct taxes.
• A taxpayer pays a direct tax to a government for different purposes, including real property tax, personal property tax, income tax or taxes on assets, FBT, Gift Tax, Capital Gains Tax, etc. 

Additional Information

•  An Indirect tax is a tax that is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of the market price of the good or service purchased.
• Some examples of indirect taxes are sales tax, excise duty, VAT, service tax, entertainment tax, custom duty, etc.
• Indirect tax such as sales tax, a specific tax, value-added tax (VAT), or goods and services tax (GST) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax.