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Property tax

CA Pooja Agarwal (Chartered Accountant) (3228 Points)

20 September 2012

what is the difference between wealth tax and property tax

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Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 20 September 2012

Property tax is the tax that you pay to Local Municipal Corporation where the property is situated. This tax is levied by the Corporation whihc provides revenue to the Corporation.

Wealth Tax on the other hand is the tax that is paid to the Cent Govt. It is levied on the Wealth possessed by the individual whihc includes not only property but also other assets whihc meet the definition criteria of Asset as per the Wealth Tax Act. Wealth in a comprehnesive manner includes Property, land, Gold, cash, etc.. as specified under the ACt.

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CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 20 September 2012

does that mean there is multiple levy of tax on property

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 20 September 2012

Yes somewhat it is a multiple levy of tax.But you can avoid this if you have two properties. One property of your choice whihc has higher market value can be claimed as exempt undr th Wealth tax and tax on other property shall be elvied provided that the value of teh property exceeds Rs 30lacs.

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CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 20 September 2012

THANK YOU SIR

CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 20 September 2012

I ALSO WANTED TO KNOW WHAT IS THE DIFFERENCE BETWEEN TDS AND WITHHOLDING TAX CONCEPTUALLY

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Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 20 September 2012

Both are the same. When there are international transactiosn between say India & US then the amount held by US before making payment to India is a tax whihc is know as withodling tax.

Just like in INdia when making payment for professional fees we deduct tax at source & then make the balacne pymt to teh party same way is the term witholding tax.