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Wealth tax and why it was abolished
August 23, 2022- Jewellery, ornaments made of precious metals, precious or semi-precious stones
- Second-owned property that is not rented for more than 300 days in a year
- Farmhouse within the ambit of 25 km from local municipality limits
- Urban land having an area exceeding 500 sq. Mts.
- Commercial establishment.
- Owned car, boat, yacht, or any aircraft
- Cash exceeding Rs.50, 000/-
Abolishment of Wealth Tax
Finance Minister Arun Jaitley while announcing Budget 2015, abolished the tax and now has been completely removed from the financial year 2015-16 onwards. The loss of revenue will be now compensated by the levy of an additional surcharge on the higher income earning assessment.Reasons for its abolishment
- The assets owned by assesses had to be valued by a registered valuer in order which was an arduous job imposing the unnecessary burden of expenses on assesses.
- Assets like, jewelry, cash, and cars were not easy to be tracked
- Lack of awareness about the wealth tax among assesses
- Did not form a significant part of the total collection of Direct taxes in India.
Current Scenario
The Wealth tax has been swapped with a higher tax on the super-rich in India. An additional surcharge of 2% is now levied on the income exceeding. 1 crore of:- -Individual, HUF, AOP, BOI, whether incorporated or not
- -Cooperative societies
- -Firms or local authorities
Greater Kailash - 1, Delhi
5 years
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