Know all about wealth tax | Business Line
This article gives the relevant details about wealth tax.Worth reading and checking whether your current assets make you liable to pay wealth tax.
Extracts from article:
Which assets?
Wealth tax is payable on assets such as real estate and bullion owned by the investor as well as on deemed assets such as those owned by a spouse. Assets such as shares, securities, mutual funds and fixed deposits, which are generally termed as ‘productive assets’, are exempt from wealth tax. Though there is a long list of items such as yachts, boats, aircraft, among others, that are subject to wealth tax, the assets commonly owned are real estate, jewellery and cars.

Home: One residential home is exempt from wealth tax, while ownership of more than one house will attract wealth tax liability. But if a property is used to conduct business or if it forms a part of stock-in-trade or has been rented out for at least 300 days in a year, wealth tax is not applicable on such property.

Vehicles: Tax is levied on the market price of the car, except where it is used in a car hiring business.

Jewellery: Ornaments made of gold, silver, platinum, bullion or any other precious metal and precious or semi-precious stones are subject to tax. This includes precious gems sewn into clothes or set into furniture. Further, cash-in-hand in excess of ₹50,000 is also subject to wealth tax.

Lastly, if you are liable to wealth tax, transferring the assets to your spouse will not help. Assets gifted to a spouse, a minor child or a son’s wife will be, notwithstanding the gift, deemed to belong to the taxpayer himself or herself.

Checks and balances
Currently, as it is mandatory to quote PAN (permanent account number) for all financial and property transactions, it is easy to link all Indian transactions of an individual.

My view
As usual a very useful article from the Hindu group.
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