It is provided in Section-6 that in computing the net wealth tax of an individual who is not a citizen of India or a Hindu Undivided Family not resident in India or resident but not ordinarily resident in India, during the year ending on the valuation date, the following items are not to be taken into account:
The value of the assets and debts located outside India and the value of the assets in India represented by any loans or debts owing to the assessee, in any case where the interest, if any, payable on such loans or debts is not to be included in the total income of the assessee under Section 10 of the Income Tax .
Generally speaking, a non-resident would be liable to wealth tax on non-productive Indian assets only. Here also those assets which are located in India but which are represented by loans or assets in respect of which interest is totally exempt, are not to be considered taxable assets for the purposes of wealth tax. |
