GENERAL KNOWLEDGE

Detailed explanation-1: -Wealth tax in India is a levy imposed by the government on individuals and Hindu Undivided Families (HUFs) with taxable assets exceeding specified limits. The Wealth Tax Act, 1957, as amended by the Finance Act, 2015, imposes a tax of 1% on the amount by which the aggregate value of taxable assets exceeds Rs. 30 lakh.

Detailed explanation-2: -Reason for Abolishment of Wealth Tax The Chelliah Committee had recommended abolition of Wealth Tax in respect of all items of wealth other than those which can be regarded as unproductive forms of wealth or other items whose possession could legitimately be discouraged in Social Interest.

Detailed explanation-3: -Calculation of Wealth Tax All individuals and Hindu Undivided Family with net wealth above ₹30 lakh were required to pay wealth tax. This means that if the total net wealth of an individual, HUF or company exceeds ₹30 lakhs, on the valuation date, a tax of 1% will be levied on the amount in excess of ₹30 lakhs.