Wealth tax

Wealth Tax is charged for every assessment year in respect of Net  Wealth on the corresponding Valuation date.There is no such concept of  levy of WT on incremental part only.It would be charged on Total net asset every year on 31.03.20XX.Therefore in the next year WT would be charged on total net asset ie Rs. 15,00,000 in your case. 

Can u give me the supporting evidence for that?

M sorry but your quey is not clear to me.

Richa is right in what she is saying and there is no need for any supporting. Just read the basic chargeability section 3 of Wealth Tax Act.

The Limit for Wealth Tax has been increased to Rs. 30 Lacs, Fyi...

I agree with Richas & Ashish, Refer section 3 of wealth Tax Act.

The present threshold limit of wealth tax is Rs. 30 lakhs. If Net Wealth exceeds this Rs. 30 lakh limit, then tax is to be paid @ 1% on the exceeded limit. There is no sucharge and cess on this. The term Assets is defined in Sec.2(ea) of Wealth Tax Act. To say briefly, the term Assets includes urban land, buildings, cars, yachts, boats, aircrafts, jewellery, bullion and articles made of gold/silver/platinum. 

Broadly, Net Wealth can be arrived as below:

Assets as per Sec.2(ea) (minus) All debts owed by the assessee as on the valuation date (31st March) on above assets (minus) Exempted assets u/s 5 (plus) Deemed assets u/s 4.

The aforesaid threshold limit of Rs. 30 lakhs is raised to Rs. 1 crore under new DTC, which means net wealth exceeding 1 crore limit will only be taxable at 1% rate without any cess. However, some more assets also brought into the ambit of the definition Assets. As said by Richa, there is no concept of incremental value. One should arrive the net wealth by following above procedure.

One more thing to note here is tax liability will be based on wealth owned as on Valuation Date i.e. 31st March, which means, if any assets are sold during the year, those will be totally excluded from the wealth tax calculation.

The exemption limit of Wealth tax increased to 30l akh.