1) House property
If you have two houses and the second one is not rented for at least 300 days in a year, then you are liable to pay wealth tax. Of course, if the second house is being used for professional purposes then you are exempt.
Tip: So, when you are buying a house make sure that the second one is in the name of your spouse or else ensure you rent the same.
Jewellery also attracts wealth tax and if it is in excess of Rs 30 lakhs, you need to be careful. Jewellery would include ornaments that are made up of silver, platinum, gold or any other bullion and precious metals. This also includes the precious and semi-precious stones.
Tip: So, if you are putting additional money into jewelery, you would be better off investing in debt instruments or shares which do not come under the purview of wealth tax. It's after all a productive asset.
3) Cash in hand in excess of Rs 50,000
If you have cash in hand in excess of Rs 50,000, you are liable to include the same in computation for wealth tax.
4) Other assets
The other assets that are considered for wealth tax are furniture, utensils paintings, , aircrafts, yachts, boats and urban land
Tip: The best way to avoid wealth tax for the above assets would be to avoid buying them. Pertinently, all assets that are transferred by individuals to their minor children are subject to wealth tax.
Wealth tax differs from the residential status. If you are a resident Indian, wealth tax would include your assets held abroad, but for a NRI, the wealth from India is only included.