Exemption limit for wealth tax to go up to Rs 1 cr

Exemption limit for wealth tax to go up to Rs 1 cr

The Direct Taxes Code (DTC) Bill proposes to raise the exemption limit for imposing wealth tax to Rs 1 crore from Rs 15 lakh at present, a move that will help a lot of taxpayers avoid the levy. The Rs 1 crore limit proposed in the Direct Taxes Code Bill, however, is much less that the exemption of Rs 50 crore proposed in the original draft.

The DTC proposes to levy wealth tax at the rate of 1 per cent. Broadly, net wealth refers to taxable wealth, which means the excess of assets over debts. The tax is levied only on specified assets under the Act and not on all assets.

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Regards
Ankitha Singhvi