Wealth Tax India

Wealth Tax in India was for more than Rs.30 Lakh of Wealth.

Wealth Tax -
There is a Core Basic difference between the Wealth Tax & Gift Tax. In Case of Gift tax, if the recipient's gift value exceeds Rs.50,000 than the Total Gift amount is taxable while in case of Wealth Tax, you need to pay wealth tax of 1% only on the amount that exceeds the Rs.30 Lakhs limit proposed in the recent budget.

E.g. If you have wealth amount 45 lakh than you will be taxed 1% on Rs.15 Lakhs (the amount that exceeds Rs.30 Lakhs) and thus your wealth tax will be Rs.15,000.
But if you receive a gift of Rs.30 Lakhs than this Total amount will be included in your Income and taxed at the rate of 30% (Because any amount more than 10 lakh falls under 30% Tax Slab) and thus your gift tax will be Rs. 9 Lakh!

What is Wealth? -
The following things are included as a Wealth.

- The Value of your second, third and subsequent residential house property if it has not been let out for more than 300 days.
- Urban Land that you posses
- Cash on Hand above Rs.50,000
- Motor Cars
- Yachts
- Boats
- Private Jet (Air Craft)
- Jewellery
- Bullion & Precious Metals (Gold, Silver, Platinu etc.)

Exemption -
If you have an outstanding loans and liabilities, then you can deduct the value of those loans from the total wealth.

Penalty -
If you fail to disclose wealth, then in addition to interest, you will have to pay a penalty in the range of one to five times the tax liability of your wealth. There are also chances that you could be prosecuted for the same.

Excellent Info - Taxman