ECONOMICS
FISCAL POLICY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Tax on donation of money or wealth.
|
|
|
Tax on people’s earnings.
|
|
|
Tax on the manufacture or sale of certain items.
|
|
|
Tax on the transfer of property when someone dies.
|
Detailed explanation-1: -The Parliament of India introduced the Gift Tax Act in 1958, and gift tax is essentially the tax charged on the receipt of gifts. The Income Tax Act states that gifts whose value exceeds Rs. 50, 000 are subject to gift tax in the hands of the recipient. Gifting is one of the many ways to express love and affection.
Detailed explanation-2: -Under current tax laws, not all gifts received in India are subject to tax. However, the Income Tax Act, 1962 includes key provisions which allow you to receive various tax-exempt gifts. For instance, if you receive gifts or cash of up to Rs. 50, 000 in a financial year, you do not have to pay any gift tax on it.
Detailed explanation-3: -The Government introduced gift tax in April 1958 regulated by Gift Tax Act, 1958 (The GTA) with an objective to impose taxes on giving and receiving gifts under certain specific circumstances. Gifts in the form of cash, demand draft, bank cheques, or anything having value were covered.