Taxpayee mostly not well aware about Wealth Tax, Wealth Tax Investment Limit, its Tax Charges and which items are applicable under wealth Tax etc.
What is wealth Tax?
Wealth tax is charged for every assessment year on the “Net wealth” of every individual, HUF and company.
What are the applicable charges on wealth tax?
It is charged @1% on the amount by which the net wealth exceeds Rs.30,00,000/-.[Section 3].
Which Item are applicable under Wealth Tax?
Applicable to all excepts the following items-
(a) Section 25 company (b) Co-operative society (c) Social club (d) Political party (e) Mutual fund specified u/s 10 (23D) of the I.T.Act. [Section 45]
For the levy of wealth tax, Assets under Section 2 (ea) means –
1. House- Any building or land appurtenant thereto whether used for residential or commercial purposes or for the purpose of maintaining a guest house or a farm house in an urban area.
Exceptions- Houses which are.
What is wealth Tax?
Wealth tax is charged for every assessment year on the “Net wealth” of every individual, HUF and company.
What are the applicable charges on wealth tax?
It is charged @1% on the amount by which the net wealth exceeds Rs.30,00,000/-.[Section 3].
Which Item are applicable under Wealth Tax?
Applicable to all excepts the following items-
(a) Section 25 company (b) Co-operative society (c) Social club (d) Political party (e) Mutual fund specified u/s 10 (23D) of the I.T.Act. [Section 45]
For the levy of wealth tax, Assets under Section 2 (ea) means –
1. House- Any building or land appurtenant thereto whether used for residential or commercial purposes or for the purpose of maintaining a guest house or a farm house in an urban area.
Exceptions- Houses which are.
- mean exclusively for residential purposes and which is allotted by a company to a whole time employee (including officer or director in whole time employment), having gross annul salary of less than Rs.5 lacs.
- Stock-in-trade.
- Occupied for business or profession of the assessee.
- Residential property and which is let out for a minimum period of 300 days in the previous year.
- Commercial establishments or complexes.
2. Motor cars-Except that which is used in the hiring business or as stock-in-trade.
3. Jewellery-Except that which is used as stock-in-trade
4. Yachts, boats and aircrafts-other than those used for commercial purposes.
5. Urban land-any land situated in urban area.
Exceptions-
3. Jewellery-Except that which is used as stock-in-trade
4. Yachts, boats and aircrafts-other than those used for commercial purposes.
5. Urban land-any land situated in urban area.
Exceptions-
- Land on which construction of a building is not permissible under any law.
- Land occupied by any building which has been constructed with the approval of the appropriate authority.
- Unused land held for industrial purposes up to 2 years
- Land held as stock-in-trade up to 10 years.
6. Cash in hand-For individuals and HUF’s, in excess of Rs.50,000/- and in the case of any other person, any amount not recorded in the books of account.
What is Net Wealth?
Net Wealth- Section 2(m)- The difference between aggregate value of assets and the value of all debts owed by the assessee on the valuation date which have been incurred in relation to the said assets. There is no separate rate for individual items. Net Wealth is liable for wealth Tax.
What is valuation date of Wealth?
Valuation date means the last day of previous year.
What is Net Wealth?
Net Wealth- Section 2(m)- The difference between aggregate value of assets and the value of all debts owed by the assessee on the valuation date which have been incurred in relation to the said assets. There is no separate rate for individual items. Net Wealth is liable for wealth Tax.
What is valuation date of Wealth?
Valuation date means the last day of previous year.
