why and when a person is liable to pay wealth tax? is there any specific situation when wealth tax is to be paid? because we come accross very rare cases for this. there being so many rich class of people in India, do they all require to file wealth tax return? will the same property be taxed everytime? and that too till asset last? please clear my doubts.
An assessee is liable to pay wealth tax @ 1% on his total wealth over and above 15lacs. The valuation of wealth is done as per the valuation rules of the Act. (its very complicated). People who are liable to pay w. tax have to file returns too.
The reason why many wealthy people do not pay wealth tax is because the definition of an asset is very narrow compared to its definition in accountancy terms.Moreover there are a hell lot of exemptions.
The tax is on the value of property you own on 31st March every year irrespective of what you do during the year.
but even at the end of the year, the residential property atleast is in the name of the assessee, then how come on that they do not file the return?
check section 5 of Wealth tax act.
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