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Wealth tax information for NRIs

Wealth tax is payable in India if your assets (net wealth) exceeds Rs. 30 lakh. The tax rate for wealth tax is currently 1% on the amount by which your net wealth exceeds Rs. 30 lakhs. NRIs may get the impression that wealth tax must be applicable to many Indians, considering the price of real estate in India these days. In most cities, an average home is probably well over Rs.30 lakhs. However, wealth tax is not widely paid in India. The reason being that many assets such as a home or business property is normally exempt, from being included for wealth tax purposes. The Wealth Tax Act provides for exemption of one house from tax. One house is exempt regardless of the value of the house. If you have just one house, even if it is worth Rs. 100 crore, it is exempt from wealth tax. An Indian resident, may have business property worth hundreds millions of Rupees, a large house and yet not pay wealth tax as such assets are not taken into account for wealth tax purposes. For NRIs, as per section 6 of the wealth tax act, only their assets in India are subject to wealth tax. There are a few options that NRIs can use to avoid paying wealth tax. There are a few points worth noting about wealth tax in India. 1. Wealth tax is not levied on productive assets; hence investments in shares, debentures, UTI, mutual funds, etc. are exempt from it. 2. As wealth tax is exempt only for one house property, in case you own more than one house, you have the option to choose which house you want to be exempt. 3. All the commercial properties are exempt from wealth tax. 4. Any house that was rented out during the previous year for a minimum period of 300 days, it also is exempt from wealth tax. In such a case if your second house is rented out over 300 days it would be exempt. The new 'Direct Tax Code' is now expected in 2013, proposes to increase the non-taxable threshold of net wealth to Rs. one crore from the existing limit of Rs. thirty lakh. To read more about these tax change proposals check article titled Direct Tax Code.
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Wealth Tax in India

Abolished

Indian Finance Minister Mr. Arun Jaitley on February 28, 2015 while announcing Budget 2015 stated that wealth tax has been completely removed from the financial year 2015- 2016 onwards.
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Wealth tax information for NRIs

Wealth tax is payable in India if your assets (net wealth) exceeds Rs. 30 lakh. The tax rate for wealth tax is currently 1% on the amount by which your net wealth exceeds Rs. 30 lakhs. NRIs may get the impression that wealth tax must be applicable to many Indians, considering the price of real estate in India these days. In most cities, an average home is probably well over Rs.30 lakhs. However, wealth tax is not widely paid in India. The reason being that many assets such as a home or business property is normally exempt, from being included for wealth tax purposes. The Wealth Tax Act provides for exemption of one house from tax. One house is exempt regardless of the value of the house. If you have just one house, even if it is worth Rs. 100 crore, it is exempt from wealth tax. An Indian resident, may have business property worth hundreds millions of Rupees, a large house and yet not pay wealth tax as such assets are not taken into account for wealth tax purposes. For NRIs, as per section 6 of the wealth tax act, only their assets in India are subject to wealth tax. There are a few options that NRIs can use to avoid paying wealth tax. There are a few points worth noting about wealth tax in India. 1. Wealth tax is not levied on productive assets; hence investments in shares, debentures, UTI, mutual funds, etc. are exempt from it. 2. As wealth tax is exempt only for one house property, in case you own more than one house, you have the option to choose which house you want to be exempt. 3. All the commercial properties are exempt from wealth tax. 4. Any house that was rented out during the previous year for a minimum period of 300 days, it also is exempt from wealth tax. In such a case if your second house is rented out over 300 days it would be exempt. The new 'Direct Tax Code' is now expected in 2013, proposes to increase the non-taxable threshold of net wealth to Rs. one crore from the existing limit of Rs. thirty lakh. To read more about these tax change proposals check article titled Direct Tax Code. Next Page : Inheriting Property in India  . . . click to read now >>
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Wealth Tax in

India Abolished

Indian Finance Minister Mr. Arun Jaitley on February 28, 2015 while announcing Budget 2015 stated that wealth tax has been completely removed from the financial year 2015-2016 onwards.
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