Which of the following taxes is/are withdrawn or abolished?a)Interest taxb)Estate dutyc)Gift taxd)All the aboveCorrect answer is option 'D'. Can you explain this answer?

Question

Answer

Taxes that are withdrawn or abolished:

a) Interest tax:

The interest tax refers to a tax levied on the interest income earned by individuals or entities. However, this tax has been withdrawn or abolished in many countries, including India.

In India, the interest tax was introduced in 1976 and was applicable to interest income earned by individuals, firms, and companies.

However, with the passage of time, the interest tax was considered to be an unnecessary burden on taxpayers, and its relevance diminished.

Consequently, the interest tax was withdrawn in India with effect from June 1, 2002.

Since then, individuals and entities do not have to pay interest tax on their interest income.

b) Estate duty:

Estate duty, also known as inheritance tax or death tax, is a tax imposed on the transfer of property or assets from a deceased person to their heirs or beneficiaries. However, this tax has been abolished in many countries, including India.

In India, estate duty was first introduced in 1953 and was applicable to the property passing on the death of a person.

However, due to various reasons such as administrative complexities, low revenue generation, and the desire to promote entrepreneurship and wealth creation, estate duty was abolished in India with effect from March 16, 1985.

Since then, there is no estate duty levied on the transfer of property or assets after the death of an individual in India.

c) Gift tax:

Gift tax refers to a tax imposed on the transfer of property or assets as a gift from one person to another. However, this tax has been withdrawn or abolished in many countries, including India.

In India, gift tax was introduced in 1958 and was applicable to gifts made by individuals and Hindu Undivided Families (HUFs).

However, over time, it was observed that the gift tax provisions were complex, difficult to administer, and resulted in low revenue generation.

As a result, the gift tax was abolished in India with effect from October 1, 1998.

Since then, individuals and HUFs do not have to pay gift tax on the transfer of property or assets as gifts.

d) All the above:

The correct answer is option 'D' - all the above taxes (interest tax, estate duty, and gift tax) have been withdrawn or abolished. These taxes were considered to be burdensome, complex, and resulted in low revenue generation. As a result, they were either withdrawn or abolished in various countries, including India.

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Which of the following taxes is/are withdrawn or abolished?

Jatin and Parekh were partners sharing P&L in the ratio of 3:2 Their Capital balances is on 1st April 2022 were 4,50,000 each. During the Year they had withdrawn Rs 40,000 and 30,000 Respectively.Their Partnership Deed provides The following

Jatin and Parekh were partners sharing P&L in the ratio of 3:3 . Their capital balances is on 1st April 2022 were 4,50,000 each. During the year they had withdrawn Rs 40,000 and 30,000 respectively. Their partnership Deed provides the following

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