Business Studies, asked by hirthik4414, 1 year ago

Define wealth tax.explain deductions under wealth tax act

Answers

Answered by hithashree
3

Explanation:

Wealth tax is a tax based on the market value of assets that are owned. Although many developed countries choose to tax wealth, the United States has generally favored taxing income.

Wealth tax is also called capital tax or equity tax.

Understanding Wealth Taxes

Wealth tax is imposed on the wealth possessed by individuals in a country. The tax is on a person's net worth which is assets minus liabilities. These assets include, but are not limited to, cash, bank deposits, shares, fixed assets, personal cars, assessed value of real property, pension plans, money funds, owner-occupied housing, and trusts. An ad valorem tax on real estate and an intangible tax on financial assets are both examples of a wealth tax.

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