Wealth tax is payable if the value of the following unproductive assets exceeds Rs 30 lakh on the last day of the financial year.
--> More than one property, if it is unoccupied.
--> Gold and ornaments.
--> Art and artefacts.
--> Luxury cars, watches, yachts and aircraft.
--> Over Rs 50,000 in cash.
How much is the tax?
--> The tax is 1% of the value of the assets exceeding Rs 30 lakh. If the value of these assets adds up to Rs 75 lakh, you have to pay Rs 45,000 (1% of Rs 45 lakh) as wealth tax.
-->There is no surcharge or cess on wealth tax.
What is exempt from wealth tax?
--> Any one residential property. Taxpayer can choose whichever property he wants exempted.
--> Commercial property.
--> Financial assets (stocks, bonds, Ulips, mutual funds, gold funds and bank balance).
--> Any outstanding loan taken to purchase the asset on which wealth tax is payable.
Filing deadline and form to use
--> Wealth tax return has to be filed by 31 July. If the assessee is liable for an audit, the last date of filing is 30 September.
--> You have to use the four-page Form BA for filing the return.
--> If you miss the last date, you can still file the return before the expiry of one year from the end of the assessment year.
What is the penalty?
--> 1% interest for every month of delay.
--> Tax evasion invites penalty ranging from 100% to 500% of the evaded amount.
--> In extreme cases, imprisonment ranging from six months to seven years, with fine, if the wealth tax exceeds Rs 1 lakh.
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