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Difference between property tax and wealth tax.

CA. Akhil Dixit (Partner at VBSB & Associates) (232 Points)

15 July 2013

What is the difference between Property Tax and Wealth Tax ?

Please guide me on afforsaid matter.

-Thank You

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4 Replies

work is worship (Service) (2728 Points)
Replied 15 July 2013

Property Tax is a levy on property that the owner is required to pay, the same is imposed by the Municipality , the governing body.

Wealth Tax is a tax on the market value of the assets that an individual holds. The tax is liabale over the exempted amount. The act provides what are assets for computation of Wealth tax and also the rate of tax.

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sanjana.r (Student CA Final ) (135 Points)
Replied 23 July 2013

From the tax angle,

If property tax is paid by the owner for the let out property,then it can be deducted from the gross annual value when computing income from house property.

Wealth Tax is a separate act itself and it is applicable only if the net wealth exceeds Rs.30,00,000.

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sanjana mathur (CA Business) (22 Points)
Replied 30 November 2013

is property tax and house tax different??

Naina Kapoor (Financial Consultant) (277 Points)
Replied 29 June 2020

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.