www.incometaxindia.gov.in Income Tax Department : Application for Wealth Tax Return

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INCOME TAX DEPARTMENT
Department of Revenue ,
Ministry of Finance,
Government of India

Type of Facility : Application for wealth Tax Return

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Home Page : http://www.incometaxindia.gov.in
Application Download for Wealth Tax Return : http://law.incometaxindia.gov.in/DIT...TR57FORMBA.pdf

RETURN OF NET WEALTH :
Wealth Tax :A wealth tax is generally conceived of as a levy based on the aggregate value of all household assets, including owner-occupied housing; cash, bank deposits, money funds, and savings in insurance and pension plans; investment in real estate and unincorporated businesses; and corporate stock, financial securities, and personal trusts.[1] A wealth tax is a tax on the accumulated stock of purchasing power, in contrast to income tax, which is a tax on the flow of assets.
1. Chargeability (Section 3):
Wealth tax is charged for every assessment year in respect of net wealth of the corresponding valuation date of every individual, HUF and company, at the rate of 1% on the amount by which the net wealth exceeds Rs. 30,00,000/- (from A Y 2010-11).

2. In Applicability (Section 45) :
Wealth tax is not applicable in respect of the following:
(a) Section 25 company
(b) Co-operative society
(c) Social club
(d) Political party
(e) Mutual Fund specified u/s. 10(23D) of the I.T. Act.

3. Definitions (Section 2) :
Assets - Section 2(ea) means
1. House - Any building or land appurtenant thereto, whether used for residential or commercial purposes or for the purpose of maintaining a guest house or a farm house in an urban area.
Exceptions - Houses which are
(a) Meant exclusively for residential purposes and which is allotted by a company to a whole time employee (including officer or director in whole time employment), having gross annual salary of less than Rs. 5 lakhs.
(b) Stock-in-trade.
(c) Occupied for business or profession of the assessee.
(d) Residential property and which is let out for a minimum period of 300 days in the previous year.
(e) Commercial establishments or complexes.
2. Motor cars - Except those used in the hiring business or as stock-in-trade.
3. Jewellery - Except that which is used as stock-in-trade.
4. Yachts, boats and aircrafts - other than those used for commercial purposes.
5. Urban land - Any land situated in urban area.

[Unregistered]

Is there any limit of income below which I need not pay taxes?

At the moment individual, HUF, AOP, and BOI having income below rupees one lakh need not pay any income tax. For other categories [persons] such as co-operatives societies, firms, companies and local authorities no such exempted limits exists, so they have to pay taxes on their entire income. In cases of senior citizens aged above 65 years and women the exempted limit for the financial year 2007-08 are rupees one lakh ninety thousand and one lakh forty thousand respectively.