Have Multiple Assets? Check Your Wealth Tax Liability
Bangalore: You often hear things related to income tax, which is a direct tax and charged on your income. There is another equally important direct tax, which is usually ignored by the people and is called wealth tax. A wealth tax is charged at the rate of 1 percent against the unproductive assets of an individual with a net worth of more than 30 lakhs. Individuals, Hindu Undivided Families and companies should file their wealth tax return according to the provisions of the Act. Read below to know about the essential facts relating to filing of wealth tax return, as reported by Centre for Investment Education and Learning, on behalf of Economic Times.
Assets liable to wealth tax are:
1. Urban Land (that is, non agricultural land)
2. Residential or commercial property
3. Jewellery, bullion, furniture, utensils and any other article made wholly or partly of gold, silver, platinum or any other precious metal
4. Luxury Cars, Aircrafts, Yachts
If you sell any of the above assets before the 31st of March of a financial year, you would not have to include that asset while calculating your wealth tax. But the gains from the sale of the asset must be included while filing your income tax return.
Individuals and HUFs are required to file their wealth tax return on 31 July of the following financial year.
The calculation for the value of each asset, according to Schedule III of the Wealth Tax Act, needs to be submitted along with the return. An assessee should also provide relevant documents supporting the valuation of the asset along with the return File.
The wealth tax return is needed to be filled under the Form BA and should be filed with the income tax office ward/circle applicable for one's income tax return. If you fail to file the return but have already paid the applicable wealth tax, then you will become liable to pay interest at 1 percent for every month of delay.
Also Read: How Evading Tax Can Cost You A Fortune?
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