Q. Consider the following statements:
1.A wealth tax is a type of indirect tax.
2.Wealth tax is levied on the income of the taxpayer
3.Wealth Tax in India is governed by Wealth Tax Act, 1957.
Which of the statements given above is/are correct?
Statement 1 and 2 are incorrect. 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.
Statement 3 is correct. Wealth Tax in India is governed by Wealth Tax Act, 1957.