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Get to know your Wealth Tax

, April 4, 2012, 2 Comments

Dear Investor/Tax payers today I would like to explain Wealth Tax – Its Applicability, How it is calculated, Due dates and Fines and penalty in case of default.

Applicability

As per Income Tax rules, Every Individual, Hindu Undivided Family (HUF) and Company whose “Net Wealth” exceeds the maximum amount which is not chargeable to wealth tax in any previous year ending of 31st March is liable to file the wealth tax return. Currently, maximum limit of ‘Net Wealth’ not chargeable to tax under the provisions of the Wealth tax Act, 1957 is Rs. 30 lakhs at present.

Calculation of ‘Net Wealth’

As the provisions of the Wealth Tax Act, 1957 – Net wealth is the aggregate value, of all assets (including deemed assets), belonging to the assessee on the valuation date, Minus the aggregate value of all debts owed by the assessee on the valuation date which have been taken in relation to the assets attracting wealth tax.

Rate of Wealth Tax

Flat charge @ 1% of the amount by which the Net Wealth exceeds Rs. 30 Lakhs.

Due dates for Wealth Tax Returns

Due dates for filling wealth tax returns are the same as Income Tax returns.

Fines / Penalty for default

In case of default in submitting wealth tax returns, Penal Interest @ 1% for every month or part of a month of delay is chargeable for Non/Late filing of return.

(Author can be reached atsumeet_raithatha@yahoo.co.in )






About author
Sumeet is Mumbai based Chartered Accountant, having 10+ years of Strong Experience across Finance & Taxation domain. His expertise includes setting up Finance & Accounting Function and Managing team of professionals to deliver end to end spectrum of F&A, Statutory & Management Audits, Taxation, Costing, Treasury & Funds Management & Finalization of Financial Statements etc. While working with ICICI Prudential, Rajasthan Royals he had the experience in Strategy Planning & Decision making support, implementing financial strategies. ...more
  • Rahmat5

    Please tell me due date of Income Tax return

    • Sumeet

      Non Audit cases – 31st July 12, Audit cases (if there are is no transfer pricing compliance) – 30th September 2012 & Audit cases (involving transfer pricing compliance) – 30th November 2012