20 November 2016
it was abolished 2016 -17, if assets having more than 50lakhs in the earlier years and wealth tax not declared means? what we have to do
04 November 2021
Income-tax is levied on the income of the taxpayer, whereas wealth tax is levied on the wealth of the taxpayer. Wealth tax is governed by Wealth Tax Act, 1957. In this part you can gain knowledge on various provisions of Wealth Tax Act, 1957. Here, it is to be noted that Wealth-tax Act, 1957 is abolished w.e.f. 1-4-2016. Basic provisions Following are the basic provisions of Wealth-tax Law which are to be kept in mind: Wealth-tax is levied on following persons only: o an individual; o a Hindu undivided family (HUF); and o a company. Persons other than individuals, Hindu Undivided Families (HUFs) and companies are not liable to pay wealth tax. A partnership firm is not liable to wealth tax, but the assets of the partnership firm are charged to tax in the hands of the partners of the firm in the form of “Interest in partnership firm”. In other words, a partnership firm is not liable to wealth tax, but the value of the assets held by the firm is to be ascertained and this value will be distributed amongst the partners of the firm and will be charged to tax in the hands of the partners. However, where a minor is admitted to the benefits of partnership in a firm, the value of the interest of such minor in the firm shall be included in the net wealth of the parent of the minor. Similarly, an association of persons (not being a co-operative housing society) is not liable to wealth tax, but the assets of the association of person are charged to tax in the hands of its members in the form of “Interest in partnership firm”. Wealth tax is levied on the net wealth owned by a person on the valuation date, i.e., 31st March of every year. Wealth-tax is levied at 1% on the net wealth in excess of Rs. 30,00,000.
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