look news india
Property Tax Notice: Earlier in India, wealth tax was imposed to bring equality among the taxpayers. But in the year 2015, the Wealth Tax Act, 1957 was abolished and in its place the government increased the surcharge from 2% to 12%. The amount the government was spending on property tax collection was much less than the collection, due to which it was dropped.
This additional tax was created to ensure that the super rich were taxed according to their wealth. Individuals whose income is more than Rs 1 crore and businesses whose income is more than Rs 10 crore fall in the category of super rich.
Who will have to pay property tax?
Wealth tax is levied on individuals, Hindu undivided families and companies. Residential status is also important in this. The property of Indian citizens and NRIs living in India is taxed differently. For example, if someone lives in India and has property abroad, property tax will be levied on it. At the same time, if an NRI has any property in India then he has to pay tax on it.
How much do property taxes cost?
Whether wealth tax will be imposed on someone or not depends on his assets. The tax rate for this has been kept at 1%. If the total net worth of an individual, HUF (Hindu Undivided Family) and company exceeds Rs 30 lakh, then 1% tax will be levied on the wealth exceeding Rs 30 lakh on the valuation date. These taxpayers will have to file returns on their total assets before July 31.
When can wealth tax notice come?
As we mentioned, if you have property whose total value is more than Rs 30 lakh, you will have to pay wealth tax on the remaining amount. If you don't give, notice may come. You will have to disclose such assets. If you do not disclose these and do not pay tax on them, you may be sent an income tax notice.
On which properties is property tax levied?
You can get things like land, second house, car, boat, gold jewellery, antiques, art work etc. under the property tax notice. They are assessed and you have not disclosed them, have not paid the tax and then suddenly you get a notice from the Income Tax Department.