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Wealth Tax In India- Other than Income-tax, there is another direct tax act called the Wealth-tax Act, 1957.
Wealth Tax In India- Other than Income-tax, there is another direct tax act called the Wealth-tax Act, 1957. It extends to the whole of India. It shall be deemed to have come into force on the 1st day of April, 1957. Wealth tax is an annual tax like income tax. It is charged for every assessment year for net wealth of corresponding valuation date on every individual, Hindu Undivided Family and company at the rate of 1% of the amount by which net wealth exceeds Rs. 30 lakhs.Incidence of Wealth tax- For an individual who is a citizen of India and resident in India, a resident-HUF and company resident in India, wealth tax is chargeable on net wealth that consists of: All assets in India and outside India All debts present in India as well as outside India are deductible while calculating the net wealth. For any individual who is an Indian citizen but not residing in India, HUF, non-resident or not ordinarily resident in India and a company non-resident in India: All assets in India except loan and debts interest whereon is exempt from income-tax under section 10 of the Income-tax Act are chargeable to tax All debts in India are deductible in computing the net wealth. All assets and debts outside India are out of the scope of Wealth Tax Act. AssetsAssets liable to wealth tax under the Wealth Tax Act are: Any building or land which includes commercial buildings, residential buildings, any guest house, a farm house situated within 25 kilometers from the local limits of any municipality Motor Cars Jewellery that includes ornaments made of gold, silver, platinum or any other precious metal of any alloy containing one or more of such precious metals as well as precious or semi-precious stones Bullion, furniture, utensils or any other, article made wholly or partly of gold, silver, platinum or any other previous metal Yachts, boats and aircrafts Urban land Cash in hand Deemed Assets: Assets transferred by one spouse or another. Assets held by minor children. Assets which are transferred consideration. Assets transferred under revocable transfer. Assets transferred to son's wife or for the benefit of son's wife Exempt Assets: Property held under a trust/legal obligation for charitable or religious purposes. Coparcenary interest in a HUF property Residential building belonging to a former ruler Former Ruler's jewellery (excluding his personal jewellery) which has been recognized as a heirloom by the Central Government before 1.4.1957 or by the CBDT after that date Assets that belong to Indian repatriates for a period of 7 years on fulfillment of the conditions prescribed One house or part of a house (with effect from 1.4.1999 one house or part of a house or a plot of land) belonging to an individual or HUF is exempt from Wealth Tax. Return on Wealth Tax:Every person, if his net wealth or the net wealth of any other person in respect of which he is assessable under this Act on the valuation date exceeded the maximum amount which is not chargeable to wealth-tax, shall, on or before the due date, furnish a return of his net wealth or the net wealth of such other person as on that valuation date in the prescribed form and verified in the prescribed manner. Our Services in Wealth TaxIn the matter of wealth tax we compute the tax liability of the assessee, helps in Valuation of the assets.