WBCS.LIVE practice question

Why are wealth taxes and gift taxes treated as paper taxes in India?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. It is not mandatory for the government to collect these taxes.
  2. They are paid only by government employees, members of the Parliament and Legislative assemblies.
  3. They do not generate much revenue in comparison to others.
  4. Tax payers need to fill out forms only in paper and submit return.

Correct answer and explanation

Correct answer: They do not generate much revenue in comparison to others.