Self Browse :
Unlike Income Tax, which is charged on your annual income in a particular year, Wealth Tax is charged on the total assets you hold. The method of calculation of total assets is somewhat involved and has several exceptions, but two broad points are worth noting:
- The Wealth Tax is charged at 1% of assets over Rs 30 lakhs. It is to be paid and filed along with Income Tax every year
- Typically, it focuses on 'unproductive assets' - such as a vacant plot of land, a house lying vacant, jeweler beyond what you wear, etc. Assets earning income (and hence being taxed) such as shares or bonds as well as assets that you use (your own house and personal jeweler) are excluded.