Financial Consultant
277 Points
Joined October 2018
Property Tax is the tax imposed on real estate owners by the municipal authorities like panchayat, municipality or municipal corporation. It is used for maintenance and upkeep of the local civic amenities of the area, like roads, sewage system, lighting, parks, and other infrastructure facilities.
Wealth tax is imposed on individuals who belong to the richer section of the society and to ensure high earning entities pay higher taxes. Individuals, HUF (Hindu Undivided Family), and companies were charged 1% on earnings of over Rs 30 lakhs.
The most important difference between Property Tax and Wealth Tax is that property tax is payable on the property which we have purchased and the amount is used for its maintenance in a financial year while wealth tax is tax payable on anything which is purchased with money once you have paid your income tax.