Is Wealth Tax Act still applicable?

Is Wealth Tax Act still applicable?

Background. Wealth tax is imposed on the richer section of the society. The intention of doing so is to bring parity amongst the taxpayers. However, wealth tax was abolished in the budget of 2015 (effective FY 2015-16) as the cost incurred for recovering taxes was more than the benefit is derived.

What is exemption limit in Wealth Tax Act?

As per section 5(vi), one house or part of a house or a plot of land not exceeding 500 sq. meters in area in case of Individual or HUF is exempt from wealth-tax.

Who is not liable for wealth tax?

Home: One residential home is exempt from wealth tax, while ownership of more than one house will attract wealth tax liability. But if a property is used to conduct business or if it forms a part of stock-in-trade or has been rented out for at least 300 days in a year, wealth tax is not applicable on such property.

Which tax has been recently abolished?

Karnataka’s Chief Minister Siddaramaiah had made the announcement to abolish the tax on agricultural income while presenting the State Budget for 2016-17. This in turn will provide relief to many tea and coffee companies besides thousands of individual coffee growers.

How do I apply for wealth tax?

How to File Returns on Wealth Tax? Individuals, enterprises, and HUFs can use Form-BA for filing wealth tax returns. The returns can be filed with the IT circle or ward applicable to the taxpayer. The due date for filing returns on wealth tax is 31st July of the following FY.

Who is called as a person under wealth tax?

(a) A resident and ordinarily resident individual, who is an Indian. (b) A resident and ordinarily resident. (c) A resident. Following persons are liable to pay wealth-tax only in respect of assets located in India.

What are the assets liable to wealth tax?

Wealth tax included certain prescribed assets, such as building or land (with certain exceptions), vehicles, jewellery, bullion, yachts, boats and aircraft (other than those ones used for commercial purposes), urban land, and cash in hand exceeding a certain amount.

What is wealth tax deduction under Wealth Tax Act?

Wealth tax was a charge levied on the total or market value of personal assets. Also known as capital tax or equity tax, wealth tax was imposed on the richer sections. A net wealth tax deducted liabilities from an individual’s wealth, primarily mortgages and other loans.

What is the scope of liability to wealth tax?

An individual is liable for wealth tax only if his net taxable wealth, that is, the aggregate value of all taxable assets (subject to available exemptions) on the valuation date (March 31) minus the aggregate value of all debts owed in relation to such taxable assets, exceeds Rs 30 lakh.

Which tax has been abolished by the GST?

The Goods and Services Tax (GST), which has replaced the Central and State indirect taxes such as VAT, excise duty and service tax, was implemented from 1st July 2017.

Who is required to pay wealth tax in India?

All individuals and Hindu Undivided Family with net wealth above Rs. 30 lakh were required to pay wealth tax. Wealth tax was based on the valuation of assets as on March 31 and would, therefore, be applicable on any assets acquired at the end of a financial year. However, assets sold during the year would not come under the purview of wealth tax.

When do you have to pay wealth tax?

A. Wealth Tax is applicable on Individual, HUF and a company if the net wealth of such person exceeds Rs. 30 Lakh. Wealth tax is charged @ 1% on net wealth exceeding Rs. 30 Lakh.

Can a HUF file a wealth tax return on paper?

Individual / HUF to whom provision of section 44AB (tax audit) is not applicable in assessment year 2014-15 may file wealth tax return on paper form. Exemption to Individual / HUF from e-filing of form BB is granted only for AY from next year (AY 2015-16) all person are required to e file wealth tax return with digital signature.

Which is the key criterion for wealth tax applicability?

The key criterion for applicability wealth tax is the market value of the net assets of the tax assessee.