Wealth Tax

Source: ET Wealth – 14 Jan 2013

 

Smart things to know – Wealth Tax

·         Wealth Tax is an annual direct tax imposed on the net wealth of individuals and HUFs with reference to the preceding financial year or the current assessment year

·         Net wealth is calculated as the aggregate value of all chargeable assets on the valuation date, minus the outstanding debts on these assets

·         Financial Assets, one residential property as well as cars, property and other assets used for commercial or business purposes are exempt from wealth tax. Any property rented for at least 300 days in a year also doesn’t attract wealth tax.

·         The taxable assets include real estate and land other than a house, precious metals, including jewellery and bullion, motor cars, urban land and cash more than 50000.

·         Wealth tax is charged at 1% on the amount that exceeds 30 lakh of the net wealth of the assessee on the valuation date, which his 31 March of a financial year.

·         For resident Indians, wealth tax is payable on all taxable assets in India or abroad. For NRIs, wealth tax is applicable only on the assets that are in India.