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Consider the following statements and identify the right ones.
i. Wealth tax is collected from productive as well as unproductive assets
ii. Estate duty was a type of inheritance tax of large estates
i. Wealth tax is collected from productive as well as unproductive assets
ii. Estate duty was a type of inheritance tax of large estates
- a)i only
- b)ii only
- c)both
- d)none
Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements and identify the right ones.i. Wealt...
Wealth tax is collected from unproductive assets only. Estate duty was abolished in 1985.
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Consider the following statements and identify the right ones.i. Wealt...
Wealth Tax and Estate Duty
Wealth Tax
- Wealth tax is a tax levied on the net wealth of individuals, Hindu Undivided Families (HUFs), and companies.
- The tax is levied on the value of assets owned by the taxpayer as on a specific date.
- Wealth tax is collected only from unproductive assets such as land, buildings, jewelry, and cars and not from productive assets such as factories, machinery, and stocks.
- The tax rate is 1% on wealth exceeding Rs. 30 lakh.
Estate Duty
- Estate duty was a tax levied on the total value of the property left by a deceased person.
- It was a type of inheritance tax of large estates and was payable by the heirs of the deceased.
- The tax rate varied from 2% to 85%, depending on the value of the estate.
- Estate duty was abolished in India in 1985.
Correct Answer: B) ii only
- The first statement is incorrect because wealth tax is collected only from unproductive assets and not from productive assets.
- The second statement is correct because estate duty was a type of inheritance tax of large estates.
Wealth Tax
- Wealth tax is a tax levied on the net wealth of individuals, Hindu Undivided Families (HUFs), and companies.
- The tax is levied on the value of assets owned by the taxpayer as on a specific date.
- Wealth tax is collected only from unproductive assets such as land, buildings, jewelry, and cars and not from productive assets such as factories, machinery, and stocks.
- The tax rate is 1% on wealth exceeding Rs. 30 lakh.
Estate Duty
- Estate duty was a tax levied on the total value of the property left by a deceased person.
- It was a type of inheritance tax of large estates and was payable by the heirs of the deceased.
- The tax rate varied from 2% to 85%, depending on the value of the estate.
- Estate duty was abolished in India in 1985.
Correct Answer: B) ii only
- The first statement is incorrect because wealth tax is collected only from unproductive assets and not from productive assets.
- The second statement is correct because estate duty was a type of inheritance tax of large estates.
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Consider the following statements and identify the right ones.i. Wealth tax is collected from productive as well as unproductive assetsii. Estate duty was a type of inheritance tax of large estatesa)i onlyb)ii onlyc)bothd)noneCorrect answer is option 'B'. Can you explain this answer?
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