|
The article gives a brief description of wealth tax in India, procedure of making wealth tax payments and the various assets on which wealth tax applies.
Wealth Taxation In India
The wealth taxation in India is known as the wealth tax act, 1957. It applies to all the citizens of the country. It is one of the most important direct taxes. It is paid on the property ownership benefits. Till a person retains the ownership of a property, he or she has to pay wealth tax based on the prevailing market rate. Even if the property is not yielding any income, Wealth tax would have to be paid.
Payment Procedures Of The Wealth Tax In India
An Assessee is one who pays the wealth tax. An assessee can belong to any of the following categories:
- A Company.
- A Hindu undivided family.
- An Association of Persons or a Body of Individuals.
- Non corporative taxpayers.
- A dead person’s legal representative, the executor or administrator.
- A non resident’s agent.
For a Hindu Undivided Family the tax is considered on the income derived from joint family collections. But for a non-corporative taxpayers, whose account is audited they have to pay the wealth tax according to the existing tax rate.
Chargeability To Wealth Tax In India
One of the main factors for a person to pay the wealth tax in India is the persons domicile status. According to the act, the domicile status of the assessee and the domicile status of the same needed for payment of the Income Tax must remain similar.
Another factor based on which wealth tax is computed is the status of the assessee, whether he is a citizen or a non citizen. For citizens the wealth of the person within India is taxed, while for non citizens the wealth of the person within India is taxed, while the wealth located outside India is not taxed.
Assets On Which Wealth Tax Is Charged
The assets on which wealth tax is chargeable in India are:
- Residence like guesthouse, residential house, urban farmhouse and commercial property.
- Automobile for personal use.
- Precious items like jewelry, bullion, furniture, utensils.
- Yachts, boats and aircrafts used for non commercial purposes.
- Urban land under the authority of municipality or cantonment board having a population of, 10,000 and more.
- If the cash in hand is more than Rs 50000 for individuals and Hindu Undivided Families.
|
