Wealth Tax In India: An Insight

Wealth Tax in India is a form of Direct Tax and is levied under the provisions of Wealth-Tax Act, 1957 ["W.T. Act" for short]. Wealth Tax is levied on every Individual, Hindu Undivided Family (HUF) and Company on the value of their net wealth which exceeds the sum of INR 30,00,000/- (Rupees Thirty Lakhs). Wealth Tax is levied every year. Some of the important definitions and provisions under W.T. Act are as follows:

DEFINITIONS

Some of the important definitions under W.T Act are as follows:

Net Wealth¹ - The amount by which the aggregate value of all the assets, wherever located, belonging to the assessee on the valuation date, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date which have been incurred in relation to the said assets.