SCHEDULE [I] - RATES OF WEALTH-TAX - Wealth Tax Act, 1957

The provisions of this schedule are not applicable w.e.f. 1.4.1993. For rates of wealth tax on or after 1.4.1993, please see Section 3 of the Act. *************** SCHEDULE 1 [I] 2 [[See section 3(1)]] RATES OF WEALTH-TAX 3 [PART I (1) In the case of every individual or Hindu undivided family, not being a Hindu undivided family, to which item (2) of this Part applies, Rate of tax (a) where the net wealth does not exceed Rs. 2,50,000 Nil; (b) where the net wealth exceeds Rs. 2,50,000 but does not exceed Rs. 10,00,000 per cent of the amount by which the net wealth exceeds Rs. 2,50,000; (c) where the net wealth exceeds Rs 10,00,000 but does not exceed Rs. 20,00,000 Rs. 3,750 plus 1 per cent of the amount by which the net wealth exceeds Rs. 10,00,000; (d) where the net wealth exceedsRs. 20,00,000 Rs. 13,750 plus 2 per cent of the amount by which the net wealth exceeds Rs. 20,00,000. (2) In the case of every Hindu undivided family which has at least one member whose net wealth assessable for the assessment year exceeds Rs. 2,50,000, Rate of tax (a) where the net wealth does not exceed Rs. 1,50,000 Nil; (b) where the net wealth exceeds Rs. 1,50,000 but does not exceedRs. 5,00,000 1 per cent of the amount by which the net wealth exceeds Rs. 1,50,000; (c) where the net wealth exceeds Rs. 5,00,000, but does not exceedRs. 10,00,000 Rs. 3,500 plus 2 per cent of the amount by which the net wealth exceeds Rs. 5,00,000; (d) where the net wealth exceeds Rs. 10,00,000 Rs. 13,500 plus 3 per cent of the amount by which the net wealth exceeds Rs. 10,00,000.] 4 [Surcharge on wealth-tax The amount of wealth-tax computed in accordance with the provisions of this Part shall, in relation to the assessment year commencing on the 1st day of April, 1988 be increased by surcharge calculated at the rate of ten per cent of such wealth-tax.] PART II 6 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] Rule 1 - 6 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] Rule 2 - 6 [Omitted by the Finance Act, 1970, w.r.e.f. 1-4-1969.] Rule 3 - 6 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] Rule 4 - 6 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] Rule 5 - 6 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] ---------------------- Notes:- 1. Inserted vide Finance Act, 1976, w.e.f. 1-4-1977. 2. Substituted vide Finance Act,1992, w.e.f. 1-4-1993. Before it was read as:- "[ See section 3]" 3. Substituted vide Finance Act, 1985, w.e.f. 1-4-1986. Earlier, Part I was substituted by the Finance Acts, 1964, 1976, 1977, 1979 and amended by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980. Prior to its substitution by the Finance Act, 1985, Part I, it stood as under: " PART I ( 1 ) In the case of every individual or Hindu undivided family, not being a Hindu undivided family to which item (2) of this Part applies Rate of tax ( a ) where the net wealth does not exceed Rs. 2,50,000 per cent of the net wealth; ( b ) where the net wealth exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 Rs. 1,250 plus 1 per cent of the amount by which the net wealth exceeds Rs. 2,50,000; ( c ) where the net wealth exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 Rs. 3,750 plus 2 per cent of the amount by which the net wealth exceeds Rs. 5,00,000; ( d ) where the net wealth exceeds Rs. 10,00,000 but does not exceed Rs. 15,00,000 Rs. 13,750 plus 3 per cent of the amount by which the net wealth exceeds Rs. 10,00,000; ( e ) where the net wealth exceeds Rs. 15,00,000 Rs. 28,750 plus 5 per cent of the amount by which the net wealth exceeds Rs. 15,00,000 : Provided that for the purposes of this item, ( i ) no wealth-tax shall be payable where the net wealth does not exceed Rs. 1,50,000; ( ii ) the wealth-tax payable shall, in no case, exceed 5 per cent of the amount by which the net wealth exceeds Rs. 1,50,000. (2) In the case of every Hindu undivided family which has at least one member whose net wealth assessable for the assessment year exceeds Rs. 1,50,000 Rate of tax ( a ) where the net wealth does not exceed Rs. 2,50,000 1 per cent of the net wealth; ( b ) where the net wealth exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 Rs. 3,750 plus 2 per cent of the amount by which the net wealth exceeds Rs. 2,50,000; ( c ) where the net wealth exceeds Rs. 5,00,000 but does not exceed Rs.10,00,000; Rs. 8,750 plus 3 per cent of the amount by which the net wealth exceeds Rs. 5,00,000; ( d ) where the net wealth exceeds Rs. 10,00,000 Rs. 23,750 plus 5 per cent of the amount by which the net wealth exceeds Rs. 10,00,000 : Provided that for the purposes of this item, ( i ) no wealth-tax shall be payable where the net wealth does not exceed Rs.1,50,000; ( ii ) the wealth-tax payable shall, in no case, exceed 5 per cent of the amount by which the net wealth exceeds Rs. 1,50,000." 4. Inserted by the Finance Act, 1988, w.e.f. 1-4-1988. 5. Before omission, Part II read as under : 'PART II In the case of every company, ( i ) on the first rupees five lakhs of net wealth Nil , ( ii ) on the balance of net wealth % : Provided that in the case of a company which has incurred a net loss in any year computed in the manner hereinafter provided and which has not declared any dividend on its equity capital in respect of that year, the rate of tax for the relevant year shall be nil . The loss referred to in the above proviso shall be computed in accordance with the provisions of Chapter IV of the Income-tax Act other than the provisions under the heads of Income "A - Salaries" and "E - Capital gains" thereof, but without deducting the allowances referred to in sub-section (2) of section 32, section 33 and section 34 of that Act or the allowance in respect of any losses brought forward from earlier years.' 6. Before omission, rules 1, 3, 4 and 5, read as under, respectively : " Rule 1 - Where the net wealth of an assessee includes the value of any asset on which wealth-tax is not payable under sub-section (2) of section 5, the amount of tax payable by the assessee shall be an amount bearing to the total amount of wealth-tax which would have been payable on the net wealth had no property been exempt the same proportion as the unexempted portion of net wealth bears to the net wealth. Rule 3 - Where an assessee is an individual who is not a citizen of India and who is not resident in India, the wealth-tax payable by him in respect of any assessment year computed in accordance with the rates specified in this Schedule shall be reduced by an amount equal to 50 per cent thereof. Rule 4 - Where the net wealth of an assessee, being an individual who is a citizen of India, or a Hindu undivided family, includes any assets located outside India, the wealth-tax payable by the assessee in respect of any assessment year shall be reduced by an amount which bears to the amount of tax that would have been payable by the assessee if the rates of tax had been reduced to one-half of the rates specified in this Schedule the same proportion as the value of the assets located outside India as reduced by the debts located outside India bears to the net wealth of the assessee. Rule 5 - Where the profits of a company in respect of any year, before deducting any of the allowances referred to in the second paragraph of the proviso to Part II, are less than the amount of wealth-tax payable by it in respect of the relevant assessment year, the wealth-tax payable by the company for such assessment year shall be limited to the amount of such profits : Provided that the company has not declared any dividend or its equity capital in respect of that year."