Wealth Tax Returns in India: Understanding the Basics
Wealth tax is a type of direct tax that is levied on the net wealth of individuals, HUFs (Hindu Undivided Families), and companies. In India, wealth tax is levied at the rate of 1% on the net wealth exceeding Rs 30 lakh as of 31st March of every year. The wealth tax was abolished in the Union Budget 2015-16, and therefore it is not applicable for the assessment year 2016-17 and onwards.
However, the wealth tax returns for the assessment year up to 2015-16 still need to be filed. In this article, we will discuss the basics of wealth tax returns in India and the role of Filemydoc in making the process hassle-free.
Who needs to file wealth tax returns in India?
As per the provisions of the Income Tax Act, 1961, any individual, HUF, or company whose net wealth exceeds Rs 30 lakh as of 31st March of every year needs to file wealth tax returns in India. The term “net wealth” refers to the total assets minus the total liabilities. The assets include immovable property, cash in hand, bank deposits, shares, and jewelry, among others. The liabilities include loans, mortgages, and other debts.
How to file wealth tax returns in India?
Wealth tax returns in India need to be filed in Form BB. The due date for filing wealth tax returns is 31st July of every year, and it is mandatory to file the returns even if there is no wealth tax liability. In case the taxpayer fails to file the wealth tax returns on or before the due date, a penalty of Rs 100 per day can be levied under Section 272A of the Income Tax Act, 1961.
The wealth tax returns can be filed either manually or electronically. However, the electronic filing of wealth tax returns is mandatory for companies and individuals whose accounts are required to be audited under Section 44AB of the Income Tax Act, 1961. The electronic filing of wealth tax returns can be done through the Income Tax Department’s website or through the help of an authorized e-return intermediary like Filemydoc.
What is Filemydoc?
Filemydoc is an authorized e-return intermediary that provides a hassle-free platform for taxpayers to file their income tax returns, wealth tax returns, and TDS returns online. The platform is user-friendly and enables taxpayers to file their returns within a few minutes, without any errors.
The key features of Filemydoc include:
- Secure and reliable: Filemydoc follows strict security protocols to ensure that the taxpayer’s data is safe and secure. The platform uses the highest level of encryption technology to protect the taxpayer’s data.
- Easy to use: The platform is user-friendly and enables taxpayers to file their returns within a few minutes, without any errors. The platform also provides a step-by-step guide to help taxpayers fill in the required details.
- Cost-effective: Filemydoc provides its services at a nominal cost, making it an affordable option for taxpayers.
- Accessible: Filemydoc is accessible from anywhere, at any time. The platform can be accessed from a desktop, laptop, or mobile device, making it convenient for taxpayers to file their returns on the go.
Benefits of using Filemydoc for filing wealth tax returns in India
Using Filemydoc for filing wealth tax returns in India comes with several benefits, such as:
- Time-saving: Filing wealth tax returns manually can be a time-consuming process. However, with Filemydoc, taxpayers can file their returns within a few minutes, without having to worry about errors or missing out on any important details.
- Accuracy: Filing wealth tax returns manually can be prone to errors, which can lead to penalties and interest charges. However, with Filemydoc, taxpayers can ensure that their returns are accurate and complete, reducing the chances of any errors or omissions.
- Expert assistance: Filemydoc provides expert assistance to taxpayers in case of any queries or issues related to filing their wealth tax returns. The platform has a team of tax experts who can provide guidance and support to taxpayers throughout the filing process.
- Reminder notifications: Filemydoc sends reminder notifications to taxpayers to ensure that they do not miss the deadline for filing their wealth tax returns. This helps taxpayers avoid penalties and interest charges for late filing.
- Secure storage of data: Filemydoc securely stores the taxpayer’s data and provides access to it anytime, anywhere. This means that taxpayers do not have to worry about losing their data or misplacing important documents.
In conclusion, filing wealth tax returns in India can be a daunting task, especially for those who are not familiar with the process. However, with the help of Filemydoc, taxpayers can make the process hassle-free, accurate, and cost-effective. So, if you are looking to file your wealth tax returns, consider using Filemydoc for a hassle-free experience.
FAQ’s
Q.1 What is wealth tax in India?
A wealth tax is a direct tax that is levied on the net wealth of individuals, HUFs, and companies. In India, wealth tax was levied at the rate of 1% on the net wealth exceeding Rs 30 lakh as of 31st March of every year. However, the wealth tax was abolished in the Union Budget 2015-16.
Q.2 Who needs to file wealth tax returns in India?
Any individual, HUF, or company whose net wealth exceeds Rs 30 lakh as of 31st March of every year needs to file wealth tax returns in India.
Q.3 What is the due date for filing wealth tax returns in India?
The due date for filing wealth tax returns in India is 31st July of every year.
Q.4 Is it mandatory to file wealth tax returns in India even if there is no wealth tax liability?
Yes, it is mandatory to file wealth tax returns in India even if there is no wealth tax liability.
Q.5 What is the penalty for not filing wealth tax returns on or before the due date?
In case the taxpayer fails to file the wealth tax returns on or before the due date, a penalty of Rs 100 per day can be levied under Section 272A of the Income Tax Act, 1961.
Q.6 Can wealth tax returns be filed electronically in India?
Yes, wealth tax returns can be filed either manually or electronically in India. However, the electronic filing of wealth tax returns is mandatory for companies and individuals whose accounts are required to be audited under Section 44AB of the Income Tax Act, 1961.
Q.7 What is Filemydoc?
Filemydoc is an authorized e-return intermediary that provides a hassle-free platform for taxpayers to file their income tax returns, wealth tax returns, and TDS returns online.
Q.8 What are the benefits of using Filemydoc for filing wealth tax returns in India?
The benefits of using Filemydoc for filing wealth tax returns in India include time-saving, accuracy, expert assistance, reminder notifications, and secure storage of data.
