The Code proposes to tax net wealth in the following manner:-

Wealth-tax will be payable by an individual, HUF and private discretionary trusts.

Wealth tax will be levied on net wealth on the valuation date i.e. the last day of the financial year.

Assets chargeable to wealth-tax will mean all assets, including financial assets and deemed assets, as reduced by exempted assets.

The valuation of financial assets will be at cost or market price, whichever is lower.

The net wealth of an individual or HUF in excess of Rupees fifty crore will be chargeable to wealth-tax at the rate of 0.25 per cent.

The threshold limit of Rupees fifty crore will not apply to a private discretionary trust.

This is only at a loud thinking stage and is not really likely to become LAW in the near future. Let’s all discuss it in the meantime and try not to confuse the people.

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Category : Income Tax (28845)
Type : News
Tags : Direct Tax Code (296) Wealth Tax (101)