What is net wealth?

Net wealth is the aggregate value, of all assets belonging to the assessee on the valuation date, subtracted by the aggregate value of all debts and liabilities owed by the assessee on the valuation date.

More: Check Your Income Tax Refund Online

Points to note:

1. Wealth tax is a tax which is charged over the benefits derived from the asset ownership. Tax is calculated as per the current market value of the asset and is to be paid every year regardless of whether or not such assets yield any income.

2. The assets transferred to a spouse or minor child or any other person without consideration, are to be included while calculating the net wealth of the individual.

3. Any one residential property can be excluded from the wealth of an assessee and a person is has the right to choose which property he wants to exclude.

4. The financial assets or productive assets, such as bank balance, shares and mutual funds, are exempt from wealth tax.

Also Read: 8 Countries with Zero Income Tax