Which of the following taxes is progressive in nature?
A. Customs duty
B. Income tax
C. Excise duty
D. Sales tax
Answer: Option B
Solution (By JKSSB Mock Tests)
A progressive tax is one where the tax rate increases with the increase in the taxable amount. Personal income tax in India is progressive with different slabs.
Explanation:
Adam Smith's concept of the invisible hand argues that individuals seeking their own gain in competitive markets unintentionally promote the overall social good.
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