Wealth tax

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Yash Dave (Querist)
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22 July 2012 i want know whether wealth tax is removed now or the limit is increase how to calculate wealth tax of the individual

RENGARAJ R.K

RENGARAJ R.K (Expert)
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22 July 2012 What is taxable?

Wealth tax is payable if the value of the following unproductive assets exceeds Rs 30 lakh on the last day of the financial year.

--> More than one property, if it is unoccupied.

--> Gold and ornaments.

--> Art and artefacts.

--> Luxury cars, watches, yachts and aircraft.

--> Over Rs 50,000 in cash.

How much is the tax?

--> The tax is 1% of the value of the assets exceeding Rs 30 lakh. If the value of these assets adds up to Rs 75 lakh, you have to pay Rs 45,000 (1% of Rs 45 lakh) as wealth tax.

-->There is no surcharge or cess on wealth tax.

What is exempt from wealth tax?

--> Any one residential property. Taxpayer can choose whichever property he wants exempted.

--> Commercial property.

--> Financial assets (stocks, bonds, Ulips, mutual funds, gold funds and bank balance).

--> Any outstanding loan taken to purchase the asset on which wealth tax is payable.

Filing deadline and form to use

--> Wealth tax return has to be filed by 31 July. If the assessee is liable for an audit, the last date of filing is 30 September.

--> You have to use the four-page Form BA for filing the return.

--> If you miss the last date, you can still file the return before the expiry of one year from the end of the assessment year.

What is the penalty?

--> 1% interest for every month of delay.

--> Tax evasion invites penalty ranging from 100% to 500% of the evaded amount.

--> In extreme cases, imprisonment ranging from six months to seven years, with fine, if the wealth tax exceeds Rs 1 lakh.

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