Consider the following: 1. Fringe Benefit Tax 2. Interest Tax 3. Securities Transaction Tax Which of the above is/are Direct Tax/Taxes?

The correct answer is D because all three options represent taxes that are paid directly by the individual or organization to the government.

1. Fringe Benefit Tax is a tax paid by employers on the value of perks or benefits provided to their employees. Since the liability to pay and the actual impact of the tax fall on the same entity, it is a direct tax.

2. Interest Tax is levied on the interest income earned by banks and financial institutions. It is considered a direct tax because it is charged on the income generated by these entities.

3. Securities Transaction Tax is a tax levied on the purchase and sale of securities listed on stock exchanges. It is classified as a direct tax because it is a tax on a specific financial transaction paid directly by the investor to the authorities.

In simple terms, a direct tax is one where the person who pays the tax cannot shift the burden to someone else. All three listed taxes follow this principle.