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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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Verified Answer
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.
Most Upvoted Answer
Consider the following statements and identify the right ones.i. Wealt...
Statement i: Wealth tax is collected from productive as well as unproductive assets.
Statement ii: Estate duty was a type of inheritance tax of large estates.
Explanation:
Statement i: Wealth tax is collected from productive as well as unproductive assets.
This statement is incorrect. Wealth tax is a tax levied on the net wealth or assets of an individual or entity. It is typically based on the market value of the assets owned by the individual. However, wealth tax is usually levied only on certain types of assets, such as real estate, investments, cash, and jewelry. It is not collected from productive assets like factories, businesses, or other income-generating assets. The purpose of wealth tax is to redistribute wealth and reduce income inequality.
Statement ii: Estate duty was a type of inheritance tax of large estates.
This statement is correct. Estate duty, also known as inheritance tax or estate tax, is a tax imposed on the transfer of the estate of a deceased person. It is typically levied on the total value of the estate and is paid by the beneficiaries or heirs of the deceased. Estate duty is usually imposed on larger estates and is designed to prevent the concentration of wealth in the hands of a few individuals. It helps to ensure a fair distribution of assets and can also contribute to revenue generation for the government.
Conclusion:
Based on the explanation above, the correct answer is option B, which states that only statement ii is correct.
Statement ii: Estate duty was a type of inheritance tax of large estates.
Explanation:
Statement i: Wealth tax is collected from productive as well as unproductive assets.
This statement is incorrect. Wealth tax is a tax levied on the net wealth or assets of an individual or entity. It is typically based on the market value of the assets owned by the individual. However, wealth tax is usually levied only on certain types of assets, such as real estate, investments, cash, and jewelry. It is not collected from productive assets like factories, businesses, or other income-generating assets. The purpose of wealth tax is to redistribute wealth and reduce income inequality.
Statement ii: Estate duty was a type of inheritance tax of large estates.
This statement is correct. Estate duty, also known as inheritance tax or estate tax, is a tax imposed on the transfer of the estate of a deceased person. It is typically levied on the total value of the estate and is paid by the beneficiaries or heirs of the deceased. Estate duty is usually imposed on larger estates and is designed to prevent the concentration of wealth in the hands of a few individuals. It helps to ensure a fair distribution of assets and can also contribute to revenue generation for the government.
Conclusion:
Based on the explanation above, the correct answer is option B, which states that only statement ii is correct.
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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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