Wealth Tax Obligations of NRIs
Bangalore: Already working hard to tackle Income Tax, here is few more info for the NRIs, who have multiple assets in India, to help them deal with their Wealth Tax as well, reports Deepa Venkatraghavan of ET. A Non Resident Indian whose net asset value in India is more than 30 lakh in a financial year, then he is accountable for wealth tax.
What Kinds of Assets will be Eligible for Wealth Tax?
- NRI holding the following assets will be liable to pay the wealth taxes.
- Urban Land (a Non Agricultural Land)
- Residential or Commercial Property
- Jewellery or Gold bars, Furniture or Utensils etc made up of gold or silver.
- Cars, Aircrafts, Yachts
- Exceeding cash of 50,000 in hand and not in the bank.
These assets located in India will come under preview of Wealth Tax in India.Sanjiv Chaudhary, Partner – KPMG says, “There are no specific criteria for deciding the ownership of gold under the Wealth Tax Act. Hence on a general basis, if you have purchased the gold and you are legal owner, it will be considered as your asset. If it has come through gift or inheritance then you will be considered as the legal owner because it your property”, as told to ET.
The property transferred to the spouse, minor child or daughter-in-law also includes in asset consideration and will be liable for the Wealth Tax Purpose. Chaudhary adds, “In case an asset is held by an individual's minor child, such asset shall be included in the wealth of the parent. If a minor has earned on account of any manual work done by him or any activity involving application of his skill, talent or specialized knowledge and experience it shall not be included in the wealth of the parent.”