Which of the following taxes was abolished in India in 2015?
- A.Estate duty
- B.Gift tax
- C.Wealth tax
- D.Securities transaction tax
Correct answer
Explanation
The correct answer is C, wealth tax. It was levied on the net wealth of individuals, Hindu undivided families and companies, but it collected very little compared with the effort of assessing it, so it was withdrawn in 2015 and replaced by an additional surcharge on very high incomes.
Option A, estate duty, was a tax on property passing on the death of its owner, and it was abolished much earlier, in 1985. Option B, gift tax, was abolished in 1998; since then gifts above a threshold are taxed in the hands of the person who receives them, as income from other sources. Option D, the securities transaction tax, is a small levy on the purchase and sale of securities on a recognised stock exchange and is very much in force, so it is not an abolished tax at all. The order of abolition, 1985, 1998 and 2015, is the part worth memorising.
Read the full article: Taxation in India and GST: Types, Articles and PYQs
Practice Questions
View allWhich of the following is an Indirect Tax in India?
- A.Goods and Services Tax
- B.Corporation Tax
- C.Income Tax
- D.Capital Gains Tax
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GST is charged on the supply of goods and services, and although the registered supplier deposits it with the government, the amount is recovered from the buyer in the price.
Read the full explanation →Which among the following taxes is NOT imposed on goods and services?
- A.Sales tax
- B.Gift tax
- C.Luxury tax
- D.Sin tax
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A gift tax is charged on the transfer of money or property from one person to another without consideration; it is a tax on a transfer between persons, not on any sale of goods or supply of services.
Read the full explanation →Which article of the Constitution provides that no tax shall be levied or collected except by authority of law?
- A.Article 246A
- B.Article 265
- C.Article 279A
- D.Article 280
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It is the foundation of the whole tax system, because it means the executive cannot demand money from a citizen without a law passed by the competent legislature.
Read the full explanation →The Goods and Services Tax came into force in India on
- A.1 April 2016
- B.1 July 2017
- C.1 April 2017
- D.1 January 2018
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GST was rolled out at a midnight session of Parliament and the date is now observed every year as GST Day.
Read the full explanation →GST was introduced in India through which Constitutional Amendment Act?
- A.One Hundred and First Amendment Act, 2016
- B.One Hundred and Second Amendment Act, 2018
- C.Hundred and Twenty-second Amendment Act, 2016
- D.Ninety-seventh Amendment Act, 2011
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It inserted Article 246A, Article 269A and Article 279A and made the sharing of taxing power between the Union and the states possible, so that both could tax the same supply.
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