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Wealth Tax Liability of an NRI ?

[Basic Aspects Of Tax Planning For NRIs]

Wealth tax is payable in India under the Wealth Tax Act 1957 on net wealth as on a particular date, which is known as the valuation date. Generally speaking, valuation date is the last day of the previous year i.e., 31 March. Wealth tax is payable by individuals and Hindu undivided families and certain companies. A non-resident individual in India, like any other resident individual is liable to wealth tax only when the net wealth on taxable “assets” on a valuation date exceeds ` 30 lakh. The amount of ` 30 lakh excludes certain exemptions from wealth tax. Deduction is allowed in respect of debts and Liabilities. The items of wealth which are either totally exempt from wealth tax and or which are so exempt from wealth tax up to a particular limit are deducted from the gross wealth to arrive at the taxable wealth on the valuation date. Generally speaking, the value of assets on the valuation date as per III Schedule to the Wealth Tax Act is taken for the purpose of computation of wealth tax payable by a non-resident individual. Hence, a non-resident should so plan his investments in India that he secures the maximum deductions and exemptions in a manner that he is liable to least possible wealth tax. The rate of wealth tax is 1% of the taxable net wealth that exceeds ` 30 lakh on the valuation date.

 

A Non-Resident Indian is liable to Wealth Tax in India on his Indian Wealth and not on his Foreign Wealth.
 

Basic Aspects Of Tax Planning For NRIs !

1. The Direct Tax Laws which affect NRIs
2. Incomes of NRIs liable to Income Tax
3. How to Compute the Taxable Income of a Non-Resident Indian (NRI)
4. Income Tax Planning by an NRI Returning to India permanently
5. Wealth Tax Liability of an NRI ?

More... Topics !..

 

Tax Guide for NRI - Tax Planning, Tax Saving, Investment Guidance for Non-Resident Indians !

1. Basic Aspects Of Tax Planning For NRIs
2. How an NRI can Avoid Clubbing of his Incomes and Wealth with that of his Spouse and Children
3. The Incomes of an NRI completely Exempt from Income Tax
4. Capital Gain of an NRI could be Completely Exempt from Income Tax
5. Items completely Exempt from Wealth Tax for an NRI
6. Special Procedure of Assessment regarding Income of an NRI from Foreign Exchange Assets
7. Deductions Allowed to NRIs in the Computation of Total Income and Tax Payable
8. Procedure for the Filing of Income Tax and Wealth Tax Returns, Assessment, and Refunds
9. Gifts by NRIs to Relatives and Friends can be made fully Exempt from Gift Tax
10. FEMA and NRIs Preliminary Aspects Analysed
11. Acquisition and Transfer of Immovable Property in India by NRIs and FEMA
12. Permissible and Prohibited Current Account Transactions in Case of NRI
13. Investment In Shares, Securities, Units And Other Activities, etc. by an NRI in India
14. Deposits in India by an NRI
15. RFC account of a Returning NRI and Investment Abroad
   
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