(Now wealth tax is abolished in India)
Persons Chargeable to Wealth Tax
(i) Individuals and
HUFs having net wealth exceeding Rs. 30 lacs on the Valuation date
(ii) All Companies having net wealth exceeding Rs. 30 Lacs
Wealth Tax Liability - 1% of Net Wealth Less Rs. 30 lacs
Assets included in Taxable Wealth
(i) A Guest House
(ii) a Residential or Commercial House with land appurtenant thereto
(iii) a farm house situated within 25 KMs from the local municipal
limits
(iv) motor cars
(v) Jewellery, bullion and furniture, utensils or any other article made
wholly or partly of gold, silver, platinum, or any other precious metal
or any alloy containing one or more of such precious metals
(vi) Yachts, boats and aircrafts
(Vii) urban land situate within the municipal limits of municipality or
cantonment board having a population of not less than 10000 or within 8
KMs of such limits
(viii) cash in hand, in excess of Rs. 50,000 in case of individuals and
HUFs, and any unrecorded amount in any other case.
Assets not included in taxable wealth
(i) a house meant exclusively for
residential purposes and allotted to a whole time employee, officer or
director of a company, whose gross annual salary is less than Rs. 5
lakhs.
(ii) a residential or commercial house,
Jewellery,
bullion and other precious articles, used as stock-in-trade.
(iii) any house occupied by the assessee for the purposes of his
business or profession
(iv) any residential property let out for at least 300 days in previous
year
(v) any property in the nature of commercial establishments or complexes
whether vacant or let out
(vi)Motor cars used in the business of running them on hire or as
stock-in-trade
(vii) Yachts, boats and aircrafts used for commercial purposes
(viii) urban land on which construction is not permissible under any law
(ix) urban land occupied by any building which has been constructed with
the approval of the appropriate authority
(x) any unused land for industrial purposes for a period of two years
from the date of its acquisition and
(x) urban land held by the assessee as stock-in-trade for a period of
ten years from the date of its acquisition by him
Assets Exempt from Wealth Tax
1. Property held under a trust
2. Coparcenaries interest in a Hindu Undivided Family
3. Residential building of a ruler
4. Heir loom Jewellery of ex-ruler
5. Assets acquired out of money brought in by NRI/Person of Indian
original permanently returned to reside in India is exempt for
successive 7 years.
6. One house or part of house or plot of land belonging to an individual
or a Hindu undivided family provided the plot of land comprises of an
area upto 500 sqm.
7. In case of an individual who is not a citizen of India, or of an
individual or HUF not resident in India, or resident but not ordinary
resident in India during the year ending the valuation date.
(i) the value of assets and debts located outside India; and
(ii) the value of any assets in India, the income from which is exempt u/s
10 of Income Tax Act.