The Wealth Tax Act, 1957 is applicable to individuals, Hindu Undivided Families and certain companies. Wealth-tax is payable on net wealth as on the valuation date which normally is the last day of the previous year i.e.31st March. All individuals are liable to Wealth tax. When the net wealth on taxable assets on a valuation date exceeds Rs.15 lakhs. This amount excludes certain exemptions from Wealth-tax.

From the total of taxable wealth, deductions are allowed for debts and liabilities. From the gross wealth items of wealth exempt from wealth tax or so exempt upto a particular limit, are deducted in order to arrive at taxable wealth on the valuation date.

For non-resident individuals, the value of Indian assets(not foreign assets) on valuation date as per Schedule III of Wealth-tax Act is considered for computation of wealth-tax. The rate of Wealth-tax is 1% of taxable net wealth for the assessment years 1993-94 onwards.

Wealth Tax Act, 1957 under which individuals, HUFs and Companies pay wealth tax. Individuals will include residents as well as non-residents. In the case of individuals, HUFs and certain companies, Wealth Tax is payable at 1% on the net wealth exceeding Rs.1.5 million as on valuation date which is the last date of the previous year i.e. 31st March. Net wealth is arrived at after various deductions, exemption and liabilities as on the valuation date.