ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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____ a tax on income or wealth
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____ a tax on goods and services
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____ a tax paid by consumers
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____ a tax paid by producers
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Detailed explanation-1: -Income tax and wealth tax are a form of direct tax. Income tax is levied on the income or profits of the person whereas wealth tax is levied on the assets owned by individuals.
Detailed explanation-2: -Income tax, corporation tax, property tax, inheritance tax and gift tax are examples of direct tax.
Detailed explanation-3: -A wealth tax is a direct tax aimed at reducing wealth inequality. Unlike Income Tax which is levied on the income of taxpayer, wealth tax is levied on the wealth of the taxpayer. Wealth Tax is governed by Wealth Tax Act, 1957.
Detailed explanation-4: -Income-tax is levied on the income of the taxpayer, whereas wealth tax is levied on the wealth of the taxpayer. Wealth tax is governed by Wealth Tax Act, 1957. In this part you can gain knowledge on various provisions of Wealth Tax Act, 1957.