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Assets for wealth tax

Raju (none) (45 Points)

13 August 2011

What are the assets that should be included in calculating the wealth tax?

Is the wealth tax applicable to an NRI? What are the exemptions and wealth tax rates for NRI?

Best Regards,

Raju.

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5 Replies

Kunal (Risk Analyst) (299 Points)
Replied 14 August 2011

Following assests wether in India or outsyd India are included in computation of WT... 1)any land n building appurtent to...includes any guest house..... and any farm house situated within 25 kms of any municipality or cantonment. 2)motor cars(trucks,buses,ambulances etc are not motor cars) 3)jewellery (but does not include gold deposit bonds) 4)yachts, boats and aircrafts. 5)urban land N yes it is applicable on NRI too.. However having regard to sec 6 of WTA their property which is located outsyd india shall not be considered in computing their wealth.

Kunal (Risk Analyst) (299 Points)
Replied 14 August 2011

Rates for WT in case of NRI are same as resident individual...i.e. 1% of amount by which wealth exceed 30 lacs.

Raju (none) (45 Points)
Replied 14 August 2011

Are the land / house assets considered in calculation even if they are 'not in use' and there is no income from the land / house?

Thank you for your reply roopak.

Kunal (Risk Analyst) (299 Points)
Replied 14 August 2011

Wealth tax is levied with respect to the wealth a person possess.. It is nt relevant wthr the land/house is generating income or not or wthrs it is being used or not in use. Howerver as per sec 5(vi) individaul n huf are allowed exemption from levy of wealth tax on any 1 house or on any 1 plot measuring less dn 500sqmt. N its my plsur raju..!

Raju (none) (45 Points)
Replied 14 August 2011

How is the value of land or house calculated for the purpose of wealth tax? One can always claim that his/her land or house is of smaller value and doesn't qualify for wealth tax. Is there a standard way how the value is calculated every year?