Chargeability of Wealth-Tax: Wealth Tax Limit Increased to Rs.30Lakhs

Wealth-tax is charged for every assessment year in respect of net wealth of the corresponding valuation date (valuation date is march 31 immediately preceding the assessment year) of every individual, HUF and company, at the rate of 1 % of the amount by which exceeds Rs. 30,00,000 (Rs. 15,00,000 for the assessment years 1993-94 to 2009-10)

By virtue of section 45 of the Wealth Tax Act, 1957 no wealth tax chargeable in respect of net wealth of:

  • Any company registered under section 25 of the companies Act, 1956;
  • Any co-operative society;
  • Any social club;
  • Any political party, as defined under section 13A of the Income Tax Act, 1961
  • A mutual Fund specified under section 10(23D) of the Income tax Act.

 

Reference: Section 3 and Section 45 of the Wealth Tax Act, 1957    

Section 3: Charge of Wealth Tax

(1) Subject to the other provisions contained in this Act], there shall be charged for every assessment year commencing on and from the first day of April, 1957 but before the first day of April, 1993, a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company at the rate or rates specified in Schedule I.

(2) Subject to the other provisions contained in this Act, there shall be charged for every assessment year commencing on and from the 1st day of April, 1993, wealth-tax in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company, at the rate of one per cent of the amount by which the net wealth exceeds fifteen lakh rupees

Provided that in the case of every assessment year commencing on and from the 1st day of April, 2010, the provisions of this section shall have effect as if for the words “fifteen lakh rupees”, the words “thirty lakh rupees” had been substituted.

Section 45: Act not to apply in certain cases

No tax shall be levied under this Act in respect of the net wealth of—

(a) to (e) [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]

(f) any company registered under section 25 of the Companies Act, 1956 (1 of 1956);

(g) any co-operative society;

(h) any social club;

(i) any political party.

Explanation.—For the purposes of clause (i), “political party” shall have the meaning assigned to it in the Explanation to section 13A of the Income-tax Act;]

(j) a Mutual Fund specified under clause (23D) of section 10 of the Income-tax Act.]

(k) the Reserve Bank of India incorporated under the Reserve Bank of India Act, 1934 (2 of 1934)

 
 

                                                                                                                                                                                                                                                                                                                 
 


 

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