Wealth Tax

Wealth tax is charged in respect of the net wealth as on 31 March every year (referred to as the “valuation date”). The term “net wealth” broadly represents the excess of prescribed assets over the debts concerned. Prescribed assets include guest houses and residential houses, motorcars, jewellery /bullion/utensils of gold, silver, etc., yachts, boats, aircraft, urban land and cash in hand. Wealth tax is charged both on individuals and companies at the rate of 1% of the amount by which the “net wealth” exceeds INR 3million by Finance Act, 2011).