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{{Use dmy dates|date=December 2016}}
{{Use Indian English|date=December 2016}}
{{Infobox legislation
| short_title = The Wealth Tax Act, 1957
| imagesize = 150
| long_title = An Act to provide for the levy of wealth-tax
| citation = [http://law.incometaxindia.gov.in/DIT/other-income-tax-acts.aspx?page=ODTA&TabId=tab_WTA Act No. 27 of 1957]
| enacted_by = [[Parliament of India]]
| date_commenced = 1 April 1957
| status = Repealed
}}
The '''Wealth Tax Act, 1957''' was an [[Act of Parliament|Act]] of the [[Parliament of India]] that provides for the levying of wealth tax on an individual, [[Hindu Undivided Family]] or company. The wealth tax was levied on the net wealth owned by a person on a valuation date, i.e., 31 March of every year. The Act applies to the whole of India. The application of the Act has been discontinued since 1 April 2016.<ref>{{cite web|title=Finance Act, 2015|url=http://www.egazette.nic.in/WriteReadData/2015/163872.pdf|publisher=Gazette of India|access-date=19 May 2015}}</ref>

The wealth tax was abolished in the [[2016 Union budget of India|Union Budget (2016–2017)]] presented by Union Finance Minister [[Arun Jaitley]] on 28 February 2016. The wealth tax was replaced with an additional surcharge of 2 per cent on the super rich with a taxable income of over 1 crore annually.<ref>{{cite web|title=Finance Act, 2015|url=http://indiabudget.nic.in/ub2015-16/bh/bh1.pdf}}</ref>

== Provisions ==

The Wealth Tax Act, 1957 governed the taxation process associated with the net wealth that an individual, a Hindu Undivided Family, or a company possesses on the valuation date.<ref>{{cite web|url=http://law.incometaxindia.gov.in/DIT/other-income-tax-acts.aspx?page=ODTA&TabId=tab_WTA |title=Other Direct Tax Acts > Wealth-Tax Act |publisher=Income Tax Government India |access-date=2013-03-05}}</ref>

The valuation date was an important component in the calculation of the Wealth Tax. The net wealth that an assessee possessed on the valuation date determined the amount of tax. The valuation date was the day of 31 March immediately preceding the Assessment Year.<ref>{{cite web|url=http://www.legalindia.in/the-wealth-tax-act-1957 |title=The Wealth-Tax Act, 1957 |publisher=Legal India |access-date=2013-03-05}}</ref>

Wealth tax is calculated at the rate of 0.25 percent (1.0 percent w.e.f April 2010) of the amount of net wealth that exceeds Rs. 50 lakh(Rs. 30 Lakh w.e.f April 2010) on the valuation date. The net wealth of an assessee includes the value of specified unproductive assets on the valuation date after subtracting the debt the assessee owes on the said assets. Wealth tax does not attract any Education Cess{{Clarify|date=August 2015}} or surcharge.<ref>{{cite web|url=http://articles.economictimes.indiatimes.com/2012-11-26/news/35364889_1_wealth-tax-act-form-ba-wealth-tax-return |title=Filing wealth tax return: Things to know |publisher=The Economic Times|date=2012-11-26 |access-date=2013-03-05}}</ref>

Wealth Tax is not applicable to<ref>{{cite web|url=http://www.du.ac.in/fileadmin/DU/Academics/course_material/TM_17.pdf |title= Lesson – 17 Wealth Tax-I |publisher=University of Delhi|access-date=2013-03-05}}</ref>
* Trusts
* Artificial Judicial Persons
* Partnership firms
* Association of persons (AOPs)
* A company registered under Section 25 of The Companies Act, 1956 (Section 8 of The Companies Act, 2013)
* Co-operative Societies
* Social clubs
* Political parties
* [[Mutual fund]]s specified under Section 10 Clause (23D) of the Income Tax Act

== References ==
{{Reflist|30em}}

{{Taxation in India}}
{{Indian legislations}}

[[Category:Indian tax legislation]]
[[Category:Acts of the Parliament of India 1957]]
[[Category:Wealth in India]]
[[Category:Taxation and redistribution]]
[[Category:Repealed Acts of the Parliament of India]]

Wealth Tax Act, 1957 - Revision history

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