Consider the following statements regarding Wealth Tax in India Wealth tax is applicable on individu...........

Economic Affairs Tax System

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Consider the following statements regarding Wealth Tax in India.

Wealth tax is applicable on individuals only.
It is applicable on income above 30 lakhs.
It was abolished in India in 2015.

Which of the above statements is/are correct?

1 only

2 only

2 and 3 only

All of the above

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Explanation:

Wealth tax is imposed on the richer section of the society. The intention of doing so was to bring parity amongst the taxpayers. However, wealth tax was abolished in the budget of 2015 (effective FY 2015-16) as the cost incurred for recovering taxes was more than the benefit is derived.

If the total net wealth of an individual, HUF or company exceeds Rs. 30 lakhs, on the valuation date, tax @1% will be leviable on the amount in excess of Rs. 30 lakhs.