Multiple choice

Which of the following statements is correct?

  1. Income tax was abolished in India in 1991.

  2. Gift tax was abolished in India in 1998.

  3. All the states have adopted the VAT.

  4. Estate duty was abolished in 1995.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Gift tax was abolished in India in 1998 to simplify the tax structure and reduce administrative burden. Income tax was NOT abolished in 1991 (it's a major revenue source). VAT has NOT been adopted by all states (GST replaced VAT later, but even before GST, some states had issues). Estate duty was abolished in 1985, not 1995.

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