Budget 2022: What Is Wealth Tax & Why Was It Abolished?

The Wealth Tax Act, 1957 was an Act of the Parliament of India that provides for the levying of wealth tax on an individual, HUFs or company. The wealth tax was levied on the net wealth of a person on 31 March of every year. Wealth tax was abolished in the Union Budget (2016–2017) presented by Union Finance Minister Arun Jaitley on 28 February 2016. It was then replaced with an additional surcharge of 2 per cent on the super rich with a taxable income of over 1 crore annually.