Whether wealth tax will be imposed on someone or not depends on his assets. The tax rate for this has been kept at 1%. If the total net wealth of an individual, HUF (Hindu Undivided Family) and company is above Rs 30 lakh, then 1% tax will be levied on the wealth above Rs 30 lakh on the valuation date.
Wealth Tax Notice: In India, wealth tax was earlier levied to bring equality among taxpayers. But in the year 2015, the Wealth Tax Act, 1957 was abolished and in its place the government increased the surcharge from 2% to 12%. The amount the government was spending on wealth tax collection was much less than the collection, due to which it was removed.
This additional tax was arranged to ensure that the super rich are taxed according to their wealth. Individuals whose income is above Rs 1 crore and businesses whose income is above Rs 10 crore come under the category of super rich.
Who has to pay Wealth Tax?
Wealth tax is levied on individuals, Hindu undivided families and companies. Residential status is also important in this. The property of Indian citizens and NRIs living in India is taxed differently. For example, if someone lives in India and has property abroad, wealth tax will be levied on him. At the same time, if an NRI owns any property in India, then he has to pay tax on it.
How much does Wealth Tax cost?
Whether wealth tax will be imposed on someone or not depends on his assets. The tax rate for this has been kept at 1%. If the total net wealth of an individual, HUF (Hindu Undivided Family) and company is above Rs 30 lakh, then 1% tax will be levied on the wealth above Rs 30 lakh on the valuation date. These taxpayers have to file returns on their net wealth before July 31.
When can Wealth Tax Notice come?
As we told that if you have assets whose net value is above Rs 30 lakh, then you have to pay wealth tax on the remaining amount. If you don’t give then notice may come. You have to disclose such assets. If you do not disclose these and pay tax on them, then income tax notice can be sent to you.
On which properties is Wealth Tax levied?
Under wealth tax notice, you can get things like land, second house, car, yacht, gold jewellery, antique piece, art piece etc. If you have such properties then you should get them valued once because it turns out that you do not know their valuation and you have not disclosed them, have not paid the tax and then suddenly you get a notice from the Income Tax Department.
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