As a NRI you may be un-knowingly evading Wealth Tax in India!
Posted on October 01 2020
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Not many Non Resident Indians (NRI / PIO / OCI) know the implication of Wealth Tax and what we have seen is that most of them are on the wrong side of the law with respect to Wealth Tax. However the good news is that, Wealth Tax is removed currently. However it is important to understand the implications of the same as your previous evasion (unknowingly – we assume) can be brought back for scrutiny anytime in the future.
What is the Wealth Tax implication for a Non Resident Indian (NRI / PIO / OCI)?
For the Wealth Tax, if as a Non Resident Indian (NRI / PIO / OCI) if you own unproductive assets such as urban land, vacant house, personal car, gold, expensive watches, paintings, etc, all of them will be liable to pay wealth tax if the net aggregate value of these things exceeds Rs 30 lakh. The tax rate is 1% on the amount over and above this Rs 30 lakh threshold. Now most Non Resident Indians have multiple properties in India, jewellery and other valuables but non revenue generating assets, which come under the preview of Wealth Tax.
As a Non Resident Indian if you have assets in India whose value exceeds Rs 30 lakh, you have to file a return for wealth tax as well.
As a Non Resident Indian if you have assets in India whose value exceeds Rs 30 lakh, you have to file a return for wealth tax as well.
Most Non Resident Indians are not aware that they have to file a Wealth Tax Return in India. The method for determination of net taxable wealth is also not known to most and unknowingly they have not been compliant with this law.
Moreover the valuation of property, jewellery, and all other assets for Wealth Tax purposes can be a tedious process. You will need to take the help of a Government Approved Valuer for getting the valuation reports for Wealth tax purposes.
The saving grace for the Non Resident Indians has been that the Wealth Tax provisions have not been rigorously implemented in India and hence most Non Resident Indians have gone unscathed on this front even after a mass default in compliance. Please stay compliance with Taxes and stay safe.
Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.
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