CHAPTER X - WEALTH TAX - Revised Discussion Paper – Direct Tax Code (DTC)

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..... CHAPTER X - WEALTH TAX - Revised Discussion Paper – Direct Tax Code (DTC) - News and Press Release Dated:- 15-6-2010 - News - 1. Chapter XVII of the Discussion Paper on the Direct Taxes Code (DTC) deals with the levy of wealth tax. Under the DTC, wealth-tax will be payable by an individual, HUF and private discretionary trusts. It will be levied on net wealth on the valuation date i.e. the last d .....

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..... ay of the financial year. Net wealth is defined as assets chargeable to wealth-tax as reduced by the debt owed in respect of such assets. Assets chargeable to wealth-tax shall mean all assets, including financial assets and deemed assets, as reduced by exempted assets. Exempted assets include stock in trade, a single residential house or a plot of land etc. The net wealth of an individual or HUF i .....

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..... n excess of Rupees fifty crore shall be chargeable to wealth-tax at the rate of 0.25 per cent. 2. The inputs on the Wealth Tax proposals are (i) Productive assets should be exempted from wealth tax as is currently the case. (ii) The threshold limit of Rupees 50 crore for levy of wealth tax is too high. (iii) On the other hand it has also been argued that tax on financial assets will be harsh .....

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..... as they are currently exempt. 3. Wealth tax is an anti- abuse measure in the integrated tax system. It ensures reporting of significant assets held by a tax payer. It is proposed that Wealth Tax will be levied broadly on the same lines as provided in the Wealth Tax Act, 1957. Accordingly, specified "unproductive assets" will be subject to the wealth tax. However, it will be payable by all taxpay .....

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..... ers except non-profit organizations. The threshold limit and rate of tax will be suitably calibrated in the context of overall tax rates. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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