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MASTER MINDS - QUALITY EDUCATION BEYOND YOUR IMAGINATION

28. Wealth Tax Act, 1957
Chargeability­Sec.3: Wealth tax is charged for every assessment year in respect of the net wealth on the corresponding valuation date of every Individual; Hindu Undivided Family and Company at the rate of 1% of the amount by which the net wealth exceeds Rs.15 Lakhs. Education Cess of 3% is not leviable on the amount of Wealth Tax. Applicability of wealth tax:
1. Individual:

The following persons treated as ‘individual’ u/s 3 of the wealth tax.
a) Legal hires of an Individual. b) Holder of an impartible estate. c) Hindu deities (it means formal a god/goddess ) d) Trustees of a trust who are liable u/s 21A. e) Trade unions 2. HUF 3. Company 4. AOP chargeable u/s 21AA :

Situation Shares of members of an AOP are determinate or known. Shares of members of an AOP are indeterminate or unknown.

Wealth Tax assessment Interest of members in the assets of the AOP shall be valued as per Rule 16 and 17 of Schedule III. Wealth tax is levied on the AOP. It is liable to tax at the rate leviable upon and recoverable from an individual who is any Indian citizen and resident.

Valuation Date: Sec.2 (q): It refers to the 31st March immediately preceeding the assessment year. This provision does not apply to – a. Company registered U/s 25 of the companies Act, 1956 b. Co­operative society and c. Any social club d. Any political party e. Any mutual fund U/s 10(23D) CHARGEABILITY

Individual

HUF / Companies

Nationality

Residential Status

Location of assets as on the valuation date

Residential Status

Location of assets as on the valuation date

Direct Taxes _Wealth Tax_F08__________________________________28.1

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Citizenship / Residential Status of the assessee in India
1. Individual who is an Indian National

Assets Located In...

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