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Tax4india ›› Income Tax ›› Non-resident Under Income Tax Act ›› Wealth Tax For NRIs
Wealth Tax For The NRIs
From the assessment years 1993-94 onwards, wealth tax is levied on the net non-productive wealth of individuals, including NRIs, and its rate is 1 % of the amount by which such net wealth exceeds Rs. 15 lakhs.
From the assessment year 1993-94, wealth-tax is levied on the net non productive wealth of individuals (including NRIs), HUFs and companies only, and the rate of wealth tax is 1% of the amount by which such net wealth exceed Rs 15 lacs.
Wealth tax is levied on the following types of non-productive assets:
- Any guest house, excluding the house for residential or commercial purposes which forms part of the stock-in-trade or for any business or profession.
- Motor cars, other than those used in the business for hire or as stock-in-trade.
- Jewllery, furniture, utensils or articles made by any use of gold, silver, platinum or any previous metal or its alloy, excluding such items used as stock-in-trade.
- Yachts, boats, aircrafts except those used for commercial purposes.
- Urban land –
- Cash in excess of Rs 50,000 for individual and HUFs and for others any amount not recorded in the books of account.
Exempt wealth of NRIs under Wealth Tax Act:
Wealth tax shall not be payable in the case of an assessee, being a person of India origin or a citizen of India who was ordinarily residing in foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of such moneys within one year immediately preceding the date of his return and at any time thereafter.
This exemption shall apply only for a period of seven successive assessment years commencing with the assessment year next following the date on which such person returned to India.
For the purpose of this section, a person shall be deemed to be of India origin if he, or either of his parents or any of his grandparents, was born in undivided India.
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