wealth tax

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Vinod Rai

Vinod Rai (Querist)
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15 April 2009 could anybody tell me why there is no levy of education cess on wealth tax act.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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15 April 2009 It may be due to the nature of transaction.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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15 April 2009 Wealth tax is not a very important or high revenue tax in view of various exemptions. Wealth tax is a socialistic tax. It is not on income but payable only because a person is wealthy.

There is no reason its just a exemption given to that person.

Do you want it to levy???

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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15 April 2009 Wealth tax obviously involves high value of transaction, but it is a different from the income tax.Wealth tax is a tax on net wealth.Since the wealth tax is beig different its method of levy also differ. Hence the excemption of 2%.

Deepak Agrawal

Deepak Agrawal (Expert)
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15 April 2009 There is a specific reason for the same.

When you will see the Wealth Tax Act, 1% to be charged is given in the section 3(2) itself. So it is freezed. Nothing can be added on it not even EC. But in case of other taxes, there is nothing specified in the section regarding the rates.

Deepak Agrawal

Deepak Agrawal (Expert)
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15 April 2009 I appreciate the question asked by Vinod Rai

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