15 April 2009
Wealth tax is not a very important or high revenue tax in view of various exemptions. Wealth tax is a socialistic tax. It is not on income but payable only because a person is wealthy.
There is no reason its just a exemption given to that person.
15 April 2009
Wealth tax obviously involves high value of transaction, but it is a different from the income tax.Wealth tax is a tax on net wealth.Since the wealth tax is beig different its method of levy also differ. Hence the excemption of 2%.
15 April 2009
There is a specific reason for the same.
When you will see the Wealth Tax Act, 1% to be charged is given in the section 3(2) itself. So it is freezed. Nothing can be added on it not even EC. But in case of other taxes, there is nothing specified in the section regarding the rates.
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