Wealth Tax Obligations of NRIs
What is not included in assets?
- Stock-in-trade, for example, if a constructor holds apartments for the selling purpose then this asset will not be accountable for wealth tax.
- Financial assets like bank balance, stocks, mutual funds, bonds and deposits.
- And a rented property provided for at least 300 days in a year is not considered to be an asset.
What Does Net Wealth Stand For?
Net wealth is the collective value of assets excluding any loans taken in order to purchase these assets. So if an NRI has taken a home loan to purchase a property, the due value of the loan will be reduced from the value of the property while calculating the net wealth. But this Net Wealth includes the Interest in Partnership that is if the NRI is a partner in any Indian Firm, then the asset value of the firm acquired by him will be accounted in his Net Wealth.
