Wealth Tax in India

Wealth Tax in India

Under Section 3 of the wealth tax Act, the following persons are chargeable to wealth as on the valuation date corresponding to wealth as on valuation date corresponding to the assessment year.
The wealth tax applicable which is as follows

1.Individual
Hindu undivided family

Company
While the income tax is chargeable on total income of an assessee at the rates laid down in the annual Finance Act of the relevant year, sub section (2) of section 3 of the wealth tax Act provides that wealth tax is to be charged in the case of an assessee being:
SI NO. Particulars Rate of Wealth Tax upto Assessement Year 2009-2010
Rate of Wealth Tax upto Assessement Year 2010-2011
1. Individual or a HUF Up to 15,00,000-Nil
Above 15,00,000-1% Up to 30,00,000 – Nil Above 30,00,000 -1%.
2 Company Up to 15,00,000-Nil
Above 15,00,000-1% Up to 15,00,000-Nil
Above 15,00,000-1%

Assets which fall outside the purview of the wealth Tax Act:-
Assets other than assests specified in Section 2 (ea) are outside the purview of the wealth tax Act and hence not chargeable to the wealth tax. The assets specified in the section 2(ea) are follows:
1. Any Guest house, residential house, commercial property and or farm house situated within 25 kilometers from the local limits of any municipality
a) A house meant exclusively property and or farn house situated within 25 kilometers from the local limits of any Municipality.
b) Any residential house forming part of stock in trade
c) Any house for commercial purpose which forms part of stock in trade.
d) Any house which is occupied by the assessee for the purpose of any business or carried by him
e) Any residential property that has been let out for a minimum period 300 days in the previous year

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