Wealth tax is a direct tax. It is charged on the net wealth of every individual and Hindu Undivided Family (HUF) who has wealth exceeding Rs. 30 lakhs.
There are prescribed guidelines that need to be followed and exemptions granted while valuing assets to arrive at wealth tax liability. Wealth tax, typically, is levied on non-productive assets.
All resident individuals are liable to pay wealth tax on their global wealth, whereas not ordinarily residents/non-resident individuals and foreign citizens are liable to pay wealth tax only on the assets situated in India. The revenue authorities for wealth tax and income tax are the same. And hence, an income tax officer can easily call for a list of assets owned by the tax payer.
Only a few taxpayers are aware that they have to file wealth tax returns. In case of failure to pay wealth tax and file wealth tax return, penalties are imposed for evading wealth tax which can be up to 500 per cent of the amount of tax evaded. In cases of deliberate default, imprisonment of up to seven years could also be imposed.
Given the crucial nature of the wealth tax and increase focus of revenue authorities on wealth tax returns and payments, it is advisable to take the assistance of a renowned tax consultancy firm. FINMART assists you in filing your wealth tax return, provide advisory in terms of wealth tax with respect to inclusion and exclusion of assets and determine if you have a wealth tax liability or not.
Any individual or any sovereign entity is eligible for advisory services.
The documents needed vary from case to case. Let FINMART understand your needs and assist you in documents requirement.
Wealth Tax shall be charged for value of ASSETS on Valuation Date to:
Wealth Tax shall not be charged to:
Company registered under Section 8 of companies act 2013.
Mutual Fund specified under section 10(23D) of Income Tax Act, 1961
The following are few of the assets subject to wealth tax:
Buildings or land other than one house property or a plot of land having area of 500 square meters or less.
Motor Cars, Yachts, boats and aircrafts
Bullion, furniture, utensils or any other, article made wholly or partly of gold, silver, platinum or any other previous metal
Cash on hand in excess of Rs. 50,000/-
Assets reduced by any debt owed in respect of such assets as on 31st March of the preceding financial year is charged to wealth tax @ 1%.