What is wealth tax in India?

Wealth tax is calculated on March 31st of every year (referred to a s the valuation date). Wealth tax is charged to both individuals and companies at the rate of 1 percent of the amount by which the “net wealth” exceeds INR 3,000,000.

The term “net wealth” is basically defined as the excess value of certain assets over accumulated debt. Assets include guest and residential houses, motorcars, jewelry/bullion/utensils of gold and silver, yachts, boats, aircraft, urban land and cash in hand. A debt is an obligation to pay a defined sum of money arising from the assets included in “net wealth.”