Wealth Tax Act, 1957
“Levied 1% tax on wealth exceeding ₹30 lakh. Abolished in Union Budget 2015–16 to ease doing business.”
Instituted in 1957 by the Ministry of Finance (CBDT) to govern direct taxation. Aimed at addressing core governance challenges and structural priorities of its era.
Administered under Ministry of Finance (CBDT) through federal coordination, state-level departments, and executive oversight mechanisms.
High compliance and collection costs with nominal revenue generation (less than 0.1% of direct tax collections).
2% Additional Surcharge on super-rich individuals (taxable income > ₹1 crore)
Official parliamentary records, ministry gazette notifications, and statutory review committee assessments concerning Wealth Tax Act, 1957.
What Should Be Retained, Redesigned, or Revived?
Status: Terminated. Replacement: 2% Additional Surcharge on super-rich individuals (taxable income > ₹1 crore). Demonstrates the systemic lifecycle of public policy in India—highlighting how changes in state capacity, federal dynamics, and technological capability render legacy frameworks obsolete or require complete legislative overhaul.
Verified Administrative & Evaluation Sources
- Official Gazette of India, Ministry of Finance (CBDT)
- Parliamentary Standing Committee Reports (2015)
- Law Commission of India & Ministry Transition Notes
Related Policy Records in Direct Taxation