Sponsored Links

Interview Questions



INTERVIEW QUESTIONS TAX WEALTH TAX DETAILS

Question: Why has Wealth Tax been abolished?

Answer: Some of the main objectives cited by experts behind the move include the following:-

Focus on more governance and less government: Finance minister, during his budget speech, cited the lack of ease of doing business as one of the reasons for abolishing the wealth tax. Also, by abolishing wealth tax, government has reduced the scope of some taxpayers taking undue advantage of the loopholes in the wealth tax act.
Simplification of tax procedures: According to experts, Indian tax laws are, by and large, very complex and therefore, prone to litigations. Government wants to simplify procedures for easier tracking and enhance transparency.
Incurs high collection costs but provides low yield: In a country with increasing number of billionaires, government collected a meagre Rs. 1008 crore as wealth tax last fiscal, exposing how the cost of collecting the tax is much higher compared to the low yield. Also, wealth tax does not form a major chunk of collection of direct taxes in India (Rs.788.67 crore and Rs.844.12 crore were collected as wealth tax in 2011-12 and 2012-13 respectively).
Increase the revenue collection: By abolishing the wealth tax and replacing it with additional surcharge, government can collect up to Rs. 9000 crore in a fiscal year, opined the finance minister in his budget speech.
Additional administrative burden: Taxpayers had to value their assets as per the Wealth Tax Rules to compute their net wealth. For certain assets such as jewellery, taxpayers had to obtain a valuation report from a registered valuer.
Tax compliance and widening the tax base: Government wants to bring more persons under its tax net given that individuals who file income tax returns outnumber those who file wealth tax returns.
Additional reporting: Taxpayers will have to do some additional reporting of information in their income tax returns in terms of listing out their assets and liabilities.
No leakage: Details about assets submitted by the taxpayer in the income tax returns will help officials correlate declared wealth with the declared income. Tax officers can, therefore, ensure that there is no tax leakage. Earlier, unproductive assets such as jewelry which cannot be readily tracked would allow assessees to skip making such disclosures in their wealth returns.
Low Awareness: According to rough estimates, many assessees in the country are only dimly aware of the existence of the wealth tax. Consequently, more often than not, assessees are served with notices for failing to pay wealth tax. In 2011-12, the number of wealth tax assessees in India stood at 1.15 lakhs.

Category Wealth Tax Interview Questions & Answers - Exam Mode / Learning Mode
Rating (0.2) By 7557 users
Added on 8/23/2016
Views 69905
Rate it!

Question: Why has Wealth Tax been abolished?

Answer:

Some of the main objectives cited by experts behind the move include the following:-

Focus on more governance and less government: Finance minister, during his budget speech, cited the lack of ease of doing business as one of the reasons for abolishing the wealth tax. Also, by abolishing wealth tax, government has reduced the scope of some taxpayers taking undue advantage of the loopholes in the wealth tax act.
Simplification of tax procedures: According to experts, Indian tax laws are, by and large, very complex and therefore, prone to litigations. Government wants to simplify procedures for easier tracking and enhance transparency.
Incurs high collection costs but provides low yield: In a country with increasing number of billionaires, government collected a meagre Rs. 1008 crore as wealth tax last fiscal, exposing how the cost of collecting the tax is much higher compared to the low yield. Also, wealth tax does not form a major chunk of collection of direct taxes in India (Rs.788.67 crore and Rs.844.12 crore were collected as wealth tax in 2011-12 and 2012-13 respectively).
Increase the revenue collection: By abolishing the wealth tax and replacing it with additional surcharge, government can collect up to Rs. 9000 crore in a fiscal year, opined the finance minister in his budget speech.
Additional administrative burden: Taxpayers had to value their assets as per the Wealth Tax Rules to compute their net wealth. For certain assets such as jewellery, taxpayers had to obtain a valuation report from a registered valuer.
Tax compliance and widening the tax base: Government wants to bring more persons under its tax net given that individuals who file income tax returns outnumber those who file wealth tax returns.
Additional reporting: Taxpayers will have to do some additional reporting of information in their income tax returns in terms of listing out their assets and liabilities.
No leakage: Details about assets submitted by the taxpayer in the income tax returns will help officials correlate declared wealth with the declared income. Tax officers can, therefore, ensure that there is no tax leakage. Earlier, unproductive assets such as jewelry which cannot be readily tracked would allow assessees to skip making such disclosures in their wealth returns.
Low Awareness: According to rough estimates, many assessees in the country are only dimly aware of the existence of the wealth tax. Consequently, more often than not, assessees are served with notices for failing to pay wealth tax. In 2011-12, the number of wealth tax assessees in India stood at 1.15 lakhs. Source: CoolInterview.com



If you have the better answer, then send it to us. We will display your answer after the approval.
Rules to Post Answers in CoolInterview.com:-
  • There should not be any Spelling Mistakes.
  • There should not be any Gramatical Errors.
  • Answers must not contain any bad words.
  • Answers should not be the repeat of same answer, already approved.
  • Answer should be complete in itself.
Name :*
Email Id :*
Answer :*
Verification Code Code Image - Please contact webmaster if you have problems seeing this image code Not readable? Load New Code
Process Verification Enter the above shown code: *
Inform me about updated answers to this question

Related Questions
View Answer
What is the difference between Income Tax and Wealth Tax?
View Answer
What is the significance of Wealth Tax?
View Answer
What is Wealth Tax in India?
View Answer
What is Wealth Tax?
View Answer

Please Note: We keep on updating better answers to this site. In case you are looking for Jobs, Pls Click Here Vyoms.com - Best Freshers & Experienced Jobs Website.

View All Wealth Tax Interview Questions & Answers - Exam Mode / Learning Mode



User Options
India News Network

Latest 20 Questions
Payment of time- barred debt is: (a) Valid (b) Void (c) Illegal (d) Voidable
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal



Fresher Jobs | Experienced Jobs | Government Jobs | Walkin Jobs | Company Profiles | Interview Questions | Placement Papers | Companies In India | Consultants In India | Colleges In India | Exams In India | Latest Results | Notifications In India | Call Centers In India | Training Institutes In India | Job Communities In India | Courses In India | Jobs by Keyskills | Jobs by Functional Areas

Testing Articles | Testing Books | Testing Certifications | Testing FAQs | Testing Downloads | Testing Interview Questions | Testing Jobs | Testing Training Institutes

Gate Articles | Gate Books | Gate Colleges | Gate Downloads | Gate Faqs | Gate Jobs | Gate News | Gate Sample Papers | Gate Training Institutes

MBA Articles | MBA Books | MBA Case Studies | MBA Business Schools | MBA Current Affairs | MBA Downloads | MBA Events | MBA Notifications | MBA FAQs | MBA Jobs
MBA Job Consultants | MBA News | MBA Results | MBA Courses | MBA Sample Papers | MBA Interview Questions | MBA Training Institutes

GRE Articles | GRE Books | GRE Colleges | GRE Downloads | GRE Events | GRE FAQs | GRE News | GRE Training Institutes | GRE Sample Papers

IAS Articles | IAS Books | IAS Current Affairs | IAS Downloads | IAS Events | IAS FAQs | IAS News | IAS Notifications | IAS UPSC Jobs | IAS Previous Question Papers
IAS Results | IAS Sample Papers | IAS Interview Questions | IAS Training Institutes | IAS Toppers Interview

SAP Articles | SAP Books | SAP Certifications | SAP Companies | SAP Study Materials | SAP Events | SAP FAQs | SAP Jobs | SAP Job Consultants
SAP Links | SAP News | SAP Sample Papers | SAP Interview Questions | SAP Training Institutes |




Copyright ©2003-2024 CoolInterview.com, All Rights Reserved.
Privacy Policy | Terms and Conditions