WEALTH TAX

Hope you all rich people are enjoying life and having gala time. Are you aware of Wealth tax. Wealth tax can also be charged if an individual's wealth crosses INR 30 lakh.

This would be taxed at 1% of the wealth.

Wealth tax is liable to : Individuals and companies have to pay wealth tax.

Below are the mentioned assets where you might need to pay tax.

. Residential house (including a guest house) and commercial building;

. Jewellery, gold and other precious metals, including articles made of precious metals;

. Yachts, boats and aircraft (other than those used by the taxpayer for commercial purposes);

. Urban land;

. Cash in hand in excess of 50,000 of individuals

. Motor cars (other than those used in taxpayer's hiring business or used as stock-in-trade).

Below are the mentioned assets where you might Not need to pay tax

. One house or part of a house or a plot of land belonging to an individual or a Hindu Undivided Family;

. A plot of land comprising an area of five hundred square metres or less;

. Any house which is occupied for the purposes of tax payer's own business or profession;

. Any residential property that has been let out for a minimum period of three hundred days in the financial year;

. Any property in the nature of commercial complex/establishment.

To check if there is liablility to pay wealth tax, first compute the market value of the assets.

If there is a loan on property, then the wealth tax payable is the net value minus the outstanding loan amount.

The due date of filing wealth tax return is the same as the one for filing of return of income, which is July 31.