Difference between property tax and wealth tax.

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What is the difference between Property Tax and Wealth Tax ?

Please guide me on afforsaid matter.

 

 

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Replies (4)

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

 

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.

is property tax and house tax different??

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.


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