• Jul
  • 09
  • 2009

Wealth tax exemption limit raised

Article ID 10005 | Posted In Income Tax | | 11 Comments » Print Friendly and PDF

Enhancement of the limit for payment of wealth tax under the existing provisions of section 3 of the Wealth-tax Act, wealth tax is charged every year in respect of net wealth, on the valuation date, of every individual, Hindu undivided family and company at the rate of one per cent. of the amount by which the net wealth exceeds Rs.15.00 lakhs. This limit was fixed in 1992.

With a view to providing for inflation-adjustment, it is proposed to raise the threshold limit for payment of wealth tax from Rs.15.00 lakhs to Rs. 30.00 lakhs.

The proposed amendment will apply for the valuation of net wealth as on 31st March, 2010 and will, accordingly, apply in relation to assessment year 2010-11 and subsequent years.

  • Sonika Koneru

    please tell the notification no for increment in wealth tax limit

  • D C Chheda

    I wsnt to know the present basic exemption limit under wealth tax act.
    D C Chheda

  • alok

    sir, please tell me about wealth tax , wealth tax exemption limit changed or not

  • mukherjee

    If a person inherits a property , and also lives in it ( not putting it on rent any part of the property)will wealth Tax be applicable.

    Also if he owns a Car in his name & not in company/ organisatio’s name, will wealth tax be applicable

  • utsav jain

    when a wealth is created on loan basis whether the wealth tax is countable from the date of sell deed
    agreement or on the completion of loan?

    • http://www.taxguru.in administrator

      Date of Purchase but loan amount can be reduced from the taxable value of wealth created

  • utsav jain

    the limit of 30 lakhs on wealth tax is on individual or family. if on family then what should be the limit for exemption

    • http://www.taxguru.in administrator

      Its per Assessee/Individual



  • premnath divakaran

    Please advise the wealth tax limit proposed in the budget for 2010-2011 presented in february 2010.

    The earlier upper limit is known to be Rs.30 lakhs.

    Please clarify by e mail

    prem nath divakaran
    indian overseas bank

    • CA Sandeep Kanoi

      Limit is same for Financial year 2009-10 and 2010-11.