BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following best defines “estate tax”?
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Tax on donation of money or wealth.
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Tax on people’s earnings.
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Tax on the manufacture or sale of certain items.
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Tax on the transfer of property when someone dies.
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Explanation:
Detailed explanation-1: -Estate duty was a form of tax which was levied on the total value of the property held by an individual calculated at the time of his / her demise. It was payable at the time when the deceased individual’s property was passed on to the successors.
Detailed explanation-2: -The net assets subject to taxation equal the person’s total assets minus liabilities and minus the prescribed tax-deductible portion of assets left behind by the deceased that cross some minimum threshold, below which no estate tax is levied.
There is 1 question to complete.