Wealth tax came into existence on
1st April 1957. Wealth tax is
derived from the property owned by
the proprietor. The proprietor
needs to pay tax every year on
property owned by them. The
residential property that does not
yield any income to its owner is
also subjected to wealth tax.
Wealth tax is termed as most
significant direct tax. As per the
wealth tax act, wealth tax is
applicable to the following:
- An individual person
- A group of people who own a
property
- A company or organization
- A Hindu undivided family (HUF)
- Person belongs to 1-by -6
categories
- A representative or heir of
a dead person
- Non corporative tax payer
The chargeability of a wealth tax
in India for its residence or
foreign citizens are different.
Any person who is resident of
India has to pay wealth tax under
his/her name. If owner of property
is deceased, heir of the property
is bound to pay the wealth tax of
the property.
If a person owns a citizenship of
a foreign country and he/she
acquires a property in India as
well as in foreign country. Under
those circumstances the property
owned by the owner in India is
taxable where as property located
outside India is exempted from the
list. All assets and debts outside
India are out of the scope of
Wealth Tax Act.
