ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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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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: -Tax on Inheritance in India But at the moment, there is no such thing as an inheritance tax in India. It applied to slabs ranging from 10% to 85% of the value of the inherited property and was in effect until 1985. Due to implementation and other factors, it was abolished in India with effect in 1985.
Detailed explanation-3: -There is a direct connection between the tax payer and the tax levying authorities. Direct Tax includes: Income Tax, Wealth Tax, Corporate tax, Gift Tax, Estate Duty.
Detailed explanation-4: -A deduction from the gross estate is allowed for funeral expenses, administration expenses, claims against the estate, certain taxes, and unpaid mortgages or other indebtedness allowable under the local law governing the administration of the decedent’s estate ( Code Sec.