Not many people understand the implications of not declaring wealth and paying proper Wealth tax on the same. If personal wealth like gold, jewellery, paintings, land etc., exceed a sum of Rs 30 lakhs, one is liable to pay Wealth Tax on the same.
So, if your gold and gold jewellery aggregates along with other items is more than Rs 30 lakhs, you need to pay one per cent of the same as Wealth Tax.
Jewellery has also to be included under Wealth and this would also include precious stones, silver, platinum, or an alloy that has precious metals in it.
Real estate is another category that comes under the purview of the Wealth Tax Act. One must particularly keep in mind a second house or property that has not been let out for more than 300 days in a financial year.
Also, if you own a boat, yacht, aircraft or keep cash in excess of Rs 50,000, these too shall incur wealth tax.
When do you have to file Wealth Tax Returns?
The date to file Wealth Tax Returns is the same as that for filing Income Tax Returns. This means the deadline would be July 31 each year, unless the same is extended every year.
While most individuals know of Income Tax, they rarely bother about wealth tax, which should not be the case. There is a possibility that amounts of gold and other assets could be seized if there is a raid for Wealth Tax.