Wealth Tax Chargeable Assets In India

Wealth tax is chargeable only on the following assets:

1. Any guest house, residential house, commercial property, urban farm house. However an exception is provided in this clause regarding the following:
   1. A residential house allotted by a company to an employee, officer or director, drawing annual salary of less than Rs. 200000.
   2. A residential or a commercial house forming part of stock in trade.
   3. Residential property let out for minimum of 300 days in a year.
   4. Commercial house used in own business of the assessee.
   The implication of this clause is that while wealth tax is chargeable on house properties , it is exempt in respect of the exceptions provided.
2. Motor car for personal use.
3. Jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals.
   Provided that where any of the said assets is used by the asses­see as stock-in-trade, such asset shall be deemed as excluded from the assets specified in this sub-clause.
4. Yachts, boats, and air-crafts used for non-business purposes.
5. Urban land, subject within the juridiction of municipality or cantonment board with a population of no less than 10,000 according to the preceding census or within 8 kilomerers or such local limits. The related office of Mamledar/Gram Panchayat can suply the details through their sat-bara(7-by-12) record o the land However, the following types of land are exempt:
   1. On which constructon is not permissible under any law.
   2. Unused land for industrial purposes held for less than 2 years.
   3. Held a stock-in-trade for 10 years.
   4. Occupied by a building constructed with the approval of an appropriate authority.
6. Cash in hand exceeding Rs. 50000 of individuals and HUFs and in other cases, amount not recorded in he book of accounts.