Wealth Tax Rates In India

For Indiviuals And Non-Specified HUF's

Net Wealth	Rate (in per cent)
On the first Rs. 2,50,000 of net wealth	NIL
On the next Rs. 7,50,000 of net wealth	1/2
On the next Rs. 10,00,000 of net wealth	1
Balance exceeding Rs. 20,00,000 of net wealth	2

For Specified Hindu Undivided Family

Net Wealth	Rate (in per cent)
On the first Rs. 1,50,000 of net wealth	NIL
On the next Rs. 3,50,000 of net wealth	1
On the next Rs. 5,00,000 of net wealth	2
Balance exceeding Rs. 10,00,000 of net wealth	3

For Individuals, HUF's and Companies


Weath tax will be charged in respect of the net wealth on the corresponding valuaton dat, of every inividuals, HUF and company @1% of the amount by which the net wealth exceeds Rs. 15 lakhs.
In the case of partnership firms, AOPs and BOIs the wealth of the firm is allocated to individual partners or members equitably.

Enhancement of the limit for payment of wealth tax, Limit of wealth tax increased

Enhancement of the limit for payment of wealth tax, Limit of wealth tax increased.

Under the existing provisions of section 3 of the Wealth-tax Act, wealth tax is charged every year in respect of net wealth on the valuation date, of every individual, Hindu undivided family and company at the rate of 1% of the amount by which the net wealthexceeds Rs. 15.00 lakhs.

It is tendered to increase the threshold limit for payment of wealth tax from Rs. 15.00. lakhs toRs. 30.00 lakhs because of inflation-adjustment,

The recommended amendment will apply for the value of net wealth as on 31st March, 2010 and will apply in relation to assessment year 2010-11.

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Form of Return of Net Wealth

3. (1) The return of net wealth referred to in section 14 shall—

         (A) in respect of assessment year 1992-93 and earlier assessment years—

            (a) in the case of individuals and Hindu undivided families, be in Form A;

            (b) in the case of companies, be in Form B;

and shall be verified in the manner specified therein;

        (B) in the case of individuals, Hindu undivided families and companies, in respect of assessment year 1993-94 and any other subsequent assessment year, be in Form BA and shall be verified in the manner specified therein.

     (2) Where the assessee is carrying on a business, a copy of the balance sheet or trial balance as on the valuation date or on the date of the closing of accounts immediately preceding the valuation date, and a copy of the auditor’s report, if any, shall also be furnished along with the return of net wealth.

Jurisdiction of  Valuation Officers.  

3A. Regional Valuation Officers shall exercise, within such areas as the Board may direct, general supervision over the work of District Valuation Officers, Valuation Officers and Assistant Valuation Officers.

     (2) District Valuation Officers, Valuation Officers and Assistant Valuation Officers shall perform the functions of a Valuation Officer in respect of such areas and in relation to such classes of assets as the Board may direct.

     (3) Where under any directions issued under sub-rule (2), the functions of a Valuation Officer in relation to any class of assets, being buildings or lands or any rights in buildings or lands, in respect of any area have been assigned to a District Valuation Officer, Valuation Officer and an Assistant Valuation Officer, such functions shall be performed by the District Valuation Officer, the Valuation Officer or, as the case may be, the Assistant Valuation Officer as provided hereunder:—

           (i)  if the value of the asset as declared in the return made by the assessee under section 14 or section 15 exceeds Rs.300 lakhs or if the asset is not disclosed or the value of the asset is not declared in such return or no such return has been made and the value of the asset, in the opinion of the Assessing Officer, exceeds the aforesaid amount, the functions shall be performed by the District Valuation Officer ;

           (ii)  if the value of the asset as declared in the return made by the assessee under section 14 or section 15 exceeds Rs. 40 lakhs but does not exceed Rs.300 lakhs or if the asset is not disclosed or the value of the asset is not declared in such return or no such return has been made and the value of the asset, in the opinion of the Assessing Officer, falls within the aforesaid limits, the functions shall be performed by the Valuation Officer; and

           (iii)  if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 40 lakhs, or if the asset is not disclosed or the value of the asset is not declared in such return or no such return has been made and the value of the asset, in the opinion of the Assessing Officer, does not exceed the aforesaid amount, the functions shall be performed by the Assistant Valuation Officer :

Provided that the District Valuation Officer referred to in clause (i) having jurisdiction in respect of the area may, if he considers it necessary or expedient so to do for the purpose of proper and efficient management of the work of valuation, himself perform such functions in relation to any asset referred to in clause (ii) :

Provided further that the Valuation Officer referred to in clause (ii) having jurisdiction in respect of the area may, if he considers it necessary or expedient so to do for the purpose of proper and efficient management of the work of valuation, himself perform such functions in relation to any asset referred to in clause (iii).

       (4) Where the valuation of any asset, being building or land or any right in any building or land, referred to the District Valuation Officer, the Valuation Officer or the Assistant Valuation Officer, as the case may be, is pending with him on the 13th February, 2009, being the date of commencement of the Wealth-tax (Second Amendment) Rules, 2009, —

(i)    the District Valuation Officer shall transfer the reference to the Valuation Officer, if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 300 lakhs ;

   (ii)     the Valuation Officer shall transfer the reference to the Assistant Valuation Officer, if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 40 lakhs.

        (5) For the purposes of sub-rules (3) and (4), the value of the assets referred to therein shall be in respect of the asset as a whole, whether owned by the assessee individually or jointly.

Conditions for reference to Valuation Officers.

3B.The percentage of the value of the asset as returned and the amount referred to in sub-clause (i) of clause (b) of sub-section (1) of section 16A shall, respectively, be 33¹/₃  per cent and Rs. 50,000.

Inspection.

3C.    The Valuation Officer or any overseer, surveyor or assessor authorised by him by order in writing in this behalf may enter any land referred to in clause (a), or any land, building or other place referred to in clause (b), of sub-section (1) of section 38A, or inspect any asset referred to in clause (c), of that sub-section, on any day, excluding Sundays and holidays under the Negotiable Instruments Act, 1881 (26 of 1881) at any time between 6 a.m. and 6p.m.

Disclosure of information respecting Assessees

Disclosure of information respecting Assesses

9.(1) The application to the [Chief Commissioner or Commissioner] under section 42B for information relating to an assessee in respect of any assessment made under the Act shall be made in Form I.

(2) The information  under section 42B shall be furnished by the [Chief Commissioner or Commissioner] in Form J.

(3) Where it is not possible for the [Chief Commissioner or Commissioner] to furnish the information asked for by the applicant under section 42B owing to the fact that the relevant assessment has not been completed, he shall inform the applicant in Form K.

(4) Where the [Chief Commissioner or Commissioner] is satisfied that it is not in the public interest to furnish or cause to be furnished the information asked for, he shall intimate the fact to the applicant in Form L.

[Search and seizure.

10.(1) The powers of search and seizure under section 37A shall be exercised in accordance with sub-rules (2) to (13).

(2) (a)   The authorisation under sub-section (1) of section 37A (other than an authorisation under the proviso thereto) by the [Director General or Director], or the [Chief Commissioner or Commissioner] or any such [Deputy.Director],or^.[Deputy Commissioner] as is  empowered by the Board in this behalf shall be in Form M;

(b)     the authorisation under the proviso to sub-section (1) of section 37A by a [Chief Commissioner or Commissioner] shall be in Form M-1;

(c)      the authorisation under sub-section (2) of section 37A by a [Chief Commissioner or Commissioner] shall be in Form M-2.

(3) Every authorisation referred to in sub-rule (2) shall be in writing under the signature of the officer issuing the authorisation and shall bear his seal.

(4) Any person in charge of or in any building, place, vessel, vehicle or aircraft authorised to be searched shall, on demand by the officer authorised to exercise the powers of search and seizure under section 37A (hereinafter referred to as the authorised officer) and on production of the authority, allow him free ingress thereto and afford all reasonable facilities for a search therein.

(5) If ingress into such building or place cannot be so obtained, it shall be lawful for the authorised officer, with such assistance of police officers or of officers of the Central Government, or of  both, as may be required, to enter such building or place and search therein and in order to effect an entrance into such building or place, to break open any outer or inner door or window of any building or place, whether that of the person to be searched or of any other person, if, after notification of his authority and purpose and demand of admittance duly made, he cannot otherwise obtain admittance:

Provided that, if any such building or place is an apartment in the actual occupancy of a woman, who, according to custom, does not appear in public, the authorised officer shall, before entering such apartment, give notice to such woman that she is at liberty to withdraw and shall afford her every reasonable facility for withdrawing and then break open the apartment and enter it.

(6) If ingress into any vessel, vehicle or aircraft authorised to be searched cannot be obtained because such vessel, vehicle or aircraft is moving or for any other reason, it shall be lawful for the authorised officer with such assistance of police officers or of officers of the Central Government, or of both, as may be required, to stop any such vessel or vehicle or, in the case of an aircraft, compel it to stop or land, and search any part of the vessel, vehicle or aircraft; and in order to effect an entrance into such vessel, vehicle or aircraft, to break open any outer or inner door or window of any such vessel, vehicle or aircraft, whether that of the person to be searched or of any other person, if after notification of his authority and purpose and demand of admittance duly made, he cannot otherwise obtain admittance:

Provided that if any such vessel, vehicle or aircraft is occupied by a woman, who according to custom, does not appear in public, the authorised officer shall, before entering such vessel, vehicle or aircraft, give notice to such woman that she is at liberty to withdraw and shall afford her every reasonable facility for withdrawing.

(7) Any person referred to in clause (ii) of sub-section (1) of section 37A may be searched by the authorised officer with such assistance as he may consider necessary. If such person is a woman, the search shall be made by another woman with a strict regard to decency.

(8) Before making a search, the authorised officer shall,—

(a)     where a building or place is to be searched, call upon two or more respectable inhabitants of the locality in which the building or place to be searched is situate, and

(b)     where a vessel, vehicle or aircraft is to be searched, call upon two or more respectable persons,

to attend and witness the search and may issue an order in writing to them or any of them so to do.

(9) The search shall be made in the presence of the witnesses aforesaid and a list of things seized in the course of such search and of the places in which they were respectively found shall be prepared by the authorised officer and signed by such witnesses; but no person witnessing a search shall be required to attend as a witness of the search in any proceeding under the Act unless specially summoned.

(10) The occupant of the building, place, vessel, vehicle or aircraft searched, including the person in charge of such vessel, vehicle or aircraft, or some person on his behalf, shall be permitted to attend during the search and a copy of the list prepared under sub-rule (9) shall be delivered to such occupant or person. A copy thereof shall be forwarded to the [Chief Commissioner or Commissioner] and, where the authorisation has been issued by any officer other than the [Chief Commissioner or Commissioner], also to that officer.

(11) Where any person is searched under clause (ii) of sub-section (1) of section 37A, a list of all things taken possession of shall be prepared and a copy thereof shall be delivered to such person. A copy thereof shall be forwarded to the [Chief Commissioner or Commissioner] and, where the authorisation has been issued by any officer other than the [Chief Commissioner or Commissioner], also to that officer.

(12) The authorised officer may convey the books of account and other documents, if any, seized by him in the course of the search made by him to the [Deputy Commissioner] or to any other authority not below the rank of Wealth-tax Officer employed in the execution of the Act.

(13) The [Assessing Officer] to whom the books of account or other documents have been handed over under sub-section (8) of section 37A shall have the power conferred on the authorised officer under sub-rule (12)].

Application for registration as valuer.

Application for registration as valuer.  

8B. (1) An application for registration as a valuer under section 34AB shall be in Form N and shall be verified in the manner specified therein and shall be accompanied by a fee of Rs. 1,000 which shall not be refunded if the application is rejected.

      (2) In the case of a person whose name has been included in the Register of Valuers on or after the 1st day of June, 1985, but before the 1st day of June, 1988, and who makes an application for continuation of his registration as a valuer under sub-section (1) of section 34AE, such application need not be accompanied by any fee.

      (3) Where an application for registration as a valuer is pending before the Board immediately before the 1st day of June, 1988, and such application includes the details of the revised qualifications specified in sub-rules (2), (6), (7), (8), (9) and (11) of rule 8A, such application may be treated as valid if the applicant remits a further fee of Rs. 750 to the Chief Commissioner or the Director General within a period of three months from the 1st day of June, 1988:

Provided that where such application does not include the revised qualifications as specified in the aforesaid provisions of rule 8A, a fresh application for registration as a valuer shall be made and the fee already paid by the applicant shall be adjusted towards the payment of fee of Rs. 1,000 :

Provided further that where any person has become ineligible for making an application for registration as a valuer in view of the revised qualifications specified in the aforesaid provisions of rule 8A, the fee already paid by the applicant shall be refunded on an application made by him to the Chief Commissioner or Director General.

Furnishing of particulars in certain cases.

 

8BB. [Omitted by the Wealth-tax (Second Amendment) Rules, 1980, w.e.f. 28-1-1980. Original rule was inserted by the Wealth-tax (Second Amendment) Rules, 1974, w.e.f. 8-10-1974.]

Scale of fees to be charged by a registered valuer.  

8C. (1) Subject to the provisions of sub-rules (2) and (3), the fees to be charged  by a registered valuer for valuation of any asset shall not exceed the amount calculated at the following rates, namely:—

           (a) On the first Rs. 5,00,000 of the asset as valued                              ¹/₂ per cent of the value;

           (b) On the next Rs. 10 lakhs of the asset as valued                             ¹/₅ per cent of the value;

           (c) On the next Rs. 40 lakhs of the asset as valued                             ¹/₁₀ per cent of the value;

           (d) On the balance of the asset as valued                                           ¹/₂₀ per cent of the value.

      (2) Where two or more assets are required to be valued by a registered valuer at the instance of an assessee, all such assets shall be deemed to constitute a single asset for the purposes of calculating the fees payable to such registered valuer.

      (3) Where the amount of fees calculated in accordance with sub-rules (1) and (2) is less than Rs. 500, the registered valuer may charge Rs. 500 as his fees.

Form of report of valuation by registered valuer

8D.     The report of valuation by a registered valuer in respect of any asset specified in column (1) of the Table below shall be in the Form specified in the corresponding entry in column (2) thereof and shall be verified in the manner indicated in such Form :—

                                                            TABLE

	1	2
(i)	Immovable property (other than agricultural lands,
	plantations, forests, mines and quarries)	Form O-1
(ii)	Agricultural lands (other than coffee, tea, rubber and
	cardamom plantations)	Form O-2
(iii)	Coffee, tea, rubber or cardamom plantations	Form O-3
(iv)	Forests	Form O-4
(v)	Mines and quarries	Form O-5
(vi)	Stocks, shares, debentures, securities, shares in partnership
	firms and business assets including goodwill but excluding
	those referred to in any other item in this Table	Form O-6
(vii)	Machinery and plant	Form O-7
(viii)	Jewellery	Form O-8
(ix)	Works of art	Form O-9
(x)	Life interest, reversions and interest in expectancy	Form O-10.

Registered valuer when to be guilty of misconduct in his professional capacity for purposes of  section 34AD  

8E. For the purposes of section 34AD of the Act, a registered valuer shall be deemed to have been guilty of misconduct in his professional capacity if he has been found so guilty,—

      (i)   in a case where he is a member of any association or institution established in India having as its object the control, supervision, regulation or encouragement of the profession of engineering, architecture, accountancy, or company secretaries or such other profession as the Board may specify in this behalf by notification in the Official Gazette, by such association or institution; or

      (ii) in any other case, by the Chief Commissioner or the Director General, in accordance with the procedure laid down in rule 8F and rules 8H to 8K.

 Charge sheet  

8F. (1) Where the Chief Commissioner or the Director General, on the basis of information in its possession, is of the opinion that any registered valuer, or any other person, not being a person referred to in sub-clause (i) of clause (e) of sub-rule (13) of rule 8A, who has made an application for registration as a valuer under rule 8B, is guilty of professional misconduct in connection with any proceeding under any law for the time being in force, he shall frame definite charges against such person and shall communicate them in writing to him together with a statement of the allegations in support of the charges.

      (2) On receipt of the charge sheet and the statement referred to in sub-rule (1), the person shall be required to submit within thirty days of the receipt of the said charge sheet and the statement or, within such further time as the Chief Commissioner or the Director General may, on an application made by that person allow in this behalf, a written statement of his defence and also to state whether he desires to be heard in person.

Inquiry Officer.

8G. [Omitted by the Wealth-tax (Second Amendment) Rules, 1988, w.e.f. 1-6-1988. Original rule was inserted by the Wealth-tax (Second Amendment) Rules, 1980, w.e.f. 28-1-1980.]

 Proceedings before Inquiry Officer

8H. (1) On receipt of the written statement of defence, or if no such statement is received within the time specified, the Inquiry Officer shall inquire into such of the charges as are not admitted.

      (2) The Inquiry Officer shall, in the course of the inquiry, consider such documentary evidence and take such oral evidence as may be relevant or material in regard to the charges.

      (3) The person who has made an application for registration as a valuer, or, as the case may be, the registered valuer, shall be entitled to cross-examine the witnesses examined in support of the charges and to give evidence in person.

      (4) If the Inquiry Officer declines to examine any witness on the ground that his evidence is not relevant or material, he shall record his reasons in writing.

      (5) At the conclusion of the inquiry, the Inquiry Officer shall prepare a report of the inquiry, recording his findings on each of the charges together with the reasons therefore.

Order of the Chief Commissioner or the Director General

8-I.  (1) The Chief Commissioner or the Director General shall consider the report of the Inquiry Officer and record his findings on each charge and, where he does not agree with the finding of the Inquiry Officer shall record the reasons for his disagreement.

       (2) If the Chief Commissioner or the Director General is satisfied on the basis of his findings on the Inquiry Officer’s report that the registered valuer or, as the case may be, the person who has made an application for registration as a valuer, is guilty of misconduct in connection with any proceeding under any law for the time being in force, he shall pass an order  under section 34AD of the Act removing the name of the registered valuer from the register of valuers or, as the case may be, directing that the person shall not be registered as a valuer.

       (3) The Chief Commissioner or the Director General shall, while communicating his order under sub-rule (2), furnish to the registered valuer, or, as the case may be, the person, a copy of the report of the Inquiry Officer and a statement of his findings together with the reasons for disagreement, if any, with the findings of the Inquiry Officer.

Procedure if no Inquiry Officer appointed

8J. The procedure prescribed in the aforesaid rules shall, mutatis mutandis, apply when the Chief Commissioner or the Director General himself conducts the inquiry without appointing an Inquiry Officer.

Change of Inquiry Officer

8K. If a change of an Inquiry Officer becomes necessary in the midst of an inquiry, the Chief Commissioner or the Director General may appoint any other Inquiry Officer not below the rank of Chief Commissioner or Commissioner and the proceedings shall be continued by the succeeding Inquiry Officer from the stage at which they were left by his predecessor.

Powers of Board and Inquiry Officer.

8L. [Omitted by the Wealth-tax (Second Amendment) Rules, 1988, w.e.f. 1-6-1988. Original rule 8L was inserted by the Wealth-tax (Second Amendment) Rules, 1980, w.e.f. 8-10-1980.]
Furnishing of particulars in certain cases.
8M. [Omitted by the Wealth-tax (Third Amendment) Rules, 1984, w.e.f. 1-4-1985. Original rule was inserted by the Wealth-tax (Second Amendment) Rules, 1980, w.e.f. 28-1-1980.]