In the context of Indian public finance, in which year was the wealth tax first formally introduced in India?

Introduction / Context:
Wealth tax was a form of direct tax that was levied on the net wealth of individuals and certain entities in India. Although it has now been abolished, questions about its origin and the year of its introduction remain important for exams covering Indian economy, taxation, and financial history. Knowing when this tax was first introduced helps learners understand the evolution of the country tax system and the policy focus on equity by taxing not only income but also accumulated wealth.

Given Data / Assumptions:

• The question asks about the year in which wealth tax was first introduced in India.
• We are given four main years related to different tax and economic reforms plus one extra year.
• We assume the reference is to the Wealth Tax Act enacted at the national level.

Concept / Approach:
The Wealth Tax Act was passed in the late nineteen fifties as a part of the policy to reduce inequality in the distribution of wealth. It came into effect from the assessment year following its introduction. The key task here is to match the correct historical year with the introduction of this Act. Many economic and taxation reforms took place in the nineteen nineties and nineteen seventies, but the specific law on wealth tax belongs to the nineteen fifties. Remembering this helps separate it from later reforms related to liberalisation or changes in income tax laws.

Step-by-Step Solution:
Step 1: Recall that the Wealth Tax Act was introduced in the late nineteen fifties as a direct tax on net wealth.Step 2: Eliminate years that do not match this timeline, such as 1976 and 1991, which are much later and associated with other economic events.Step 3: Compare the remaining options 1948 and 1957. The year 1948 is too early, since the new tax framework was still evolving after independence.Step 4: Identify 1957 as the year in which the Wealth Tax Act was enacted and implemented.Step 5: Select 1957 as the final answer.

Verification / Alternative check:
An additional check can be done by recalling that many Indian taxation laws including the Income Tax Act 1961 and others followed after the 1957 period. Wealth tax was one of the earlier experiments with direct taxes on assets. Textbooks on public finance and standard exam guides consistently state that wealth tax was first introduced in 1957. Comparing this with known dates of other major reforms makes 1957 stand out as the only historically consistent option.

Why Other Options Are Wrong:
The year 1948 is very soon after independence and is not the correct date for the Wealth Tax Act, though many financial adjustments were happening then. The years 1976 and 1991 are associated with different types of reforms; 1991 in particular is linked with liberalisation, not the birth of wealth tax. The extra option 1969 is linked with events like bank nationalisation, again not with wealth tax introduction. Therefore these years do not match the specific law being asked about.

Common Pitfalls:
Students often confuse the introduction of wealth tax with broad economic reforms in 1991 or with the Income Tax Act of 1961, because those events are widely discussed. Another mistake is to guess a year close to independence. A helpful strategy is to place key economic laws on a mental timeline and remember that wealth tax falls between independence and the Income Tax Act time period, making the late nineteen fifties the correct zone.

Final Answer:
1957