We have all heard the saying “Desire Is A Well That Never Dries Up”. Wealth is a relative term. It can never be measured. It is never enough .Don’t we all feel that how much ever we have we are not satisfied? Where is that security and feeling of heavenly bliss that money alone can buy? India is a nation which strives to produce millionaires. More the merrier is our motto. Ours is a nation which aspires to be one of the Dollar Billionaires’. We have about 50 people in our country with a Net worth of about 4500 crores. We have about 2 Lakh Dollar Millionaires in our country. Crème De La Crème..... Remember A Golden Key Can Open Any Door .....
The rich are taxed the world over. Remember the Cyprus case in which the rich were taxed, mainly a tax imposed on their bank deposits in order to fund the nation’s bailout package. Can our nation be far behind? Aren’t our neo rich unhappy with the 10% surcharge imposed on their earnings? I would like to remind all of you that the team of Financial Planners at IndianMoney.com are always there for you to plan your Taxation needs in a most efficient manner. You can explore this unique Free Advisory Service just by giving a missed call at 022 6181 6111.
Here we have wealth taxation in India known as the wealth tax act 1957.It is a direct annual tax levied on the ownership of certain assets by individuals and HUF even though these assets may not generate any income. Pensioners, The retired, senior citizens no one has been spared by this tax. This tax needs to be filed by July 31st of the assessment year. Remember always pay your wealth tax on time as the late payment of wealth tax attracts a penalty of 1% of interest per month for each month of delay. Do not even try to evade your wealth tax as a heavy penalty of five times the tax amount due may be imposed.
See Also: How is one affected by wealth tax?
This is basically an amount of 1% on net wealth above and over 30 Lakhs. Let us consider the net wealth to be 75 Lakhs. Then we have the difference of 75 Lakhs over and above 30 Lakhs. This translates to be 45 Lakhs charged at 1 % .An amount of INR 45000 is charged as wealth tax.
According to the Wealth Tax Act 1957 the following are regarded as deemed assets and wealth tax is charged :
See Also: Wealth Tax - Do you really need to pay?
Here I would like to end this article by giving my readers a thought provoking message. We know that wealth alone is not enough to satisfy our needs and there is something extra which we must all do in order to provide that inner gratification .Here we look at Corporate Social Responsibility and Philanthropy. Here we need to look no further than Mr Azim Premji who donated a 12 % stake in his company Wipro valued at $ 2.2 Billion towards education focused Azim Premji Foundation. Mrs Nita Ambani wife of Mr Mukesh Ambani owner of the Petrochemical giant Reliance Industries runs a nonprofit organization for the education and healthcare of the poor and under privileged in India. She is also a part of Reliance and UNAIDS Partnership which is aimed towards halting and reversing the spread of the HIV Epidemic in India. Here we know that Imitation Is The Sincerest Form Of Flattery and if we can, we must imitate these great individuals. We can read up IndianMoney.com for our Taxation needs.
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