What is meant by wealth tax Act?

The Wealth Tax Act, 1957 was an Act of the Parliament of India that provides for the levying of wealth tax on an individual, Hindu Undivided Family (HUF) or company. The wealth tax was levied on the net wealth owned by a person on a valuation date, i.e., 31 March of every year.

What are the exempted wealth under wealth tax?

Exempted Assets: Assets which are not considered as a part of wealth for the computation of wealth tax. Property held under trust/ for the purpose of charitable/religious purposes. Interest in coparcenary property of Hindu Undivided family. Jewellery in possession of ruler not being his personal property.

What is the penalty for not paying wealth tax?

Wealth tax fact file If you haven’t paid yet, add 1% interest on the tax for every month of delay. Penalty for evasion can be up to 500% of the tax sought to be evaded. Assessee can be jailed for up to 7 years if the tax evaded exceeds Rs 1 lakh. Penalty for delay in filing wealth tax return can be Rs 100-200 per day.

What was the Wealth Tax Act of 1957?

THE WEALTH-TAX ACT, 1957 (Modified as on 12th November 2018) ARRANGEMENT OF SECTIONS __________ SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II CHARGE OF WEALTH-TAX AND ASSETS SUBJECT TO SUCH CHARGE 3. Charge of wealth-tax . 4. Net wealth to include certain assets.

What are the basic provisions of Wealth Tax Act?

Following are the basic provisions of Wealth-tax Law which are to be kept in mind: Wealth-tax is levied on following persons only: 1 an individual; 2 a Hindu undivided family (HUF); and 3 a company. More

How is wealth tax different from income tax?

Income-tax is levied on the income of the taxpayer, whereas wealth tax is levied on the wealth of the taxpayer. Wealth tax is governed by Wealth Tax Act, 1957. In this part you can gain knowledge on various provisions of Wealth Tax Act, 1957. Here, it is to be noted that Wealth-tax Act, 1957 is abolished w.e.f. 1-4-2016.

Who is liable to pay wealth tax in India?

Here, it is to be noted that Wealth-tax Act, 1957 is abolished w.e.f. 1-4-2016. Following are the basic provisions of Wealth-tax Law which are to be kept in mind: Wealth-tax is levied on following persons only: a company. Persons other than individuals, Hindu Undivided Families (HUFs) and companies are not liable to pay wealth tax.