Moneylife - Linkedin Moneylife - Facebook Moneylife - Twitter Moneylife - Youtube Moneylife Rss feed
close

Moneylife » Investing » Investing » Government may levy wealth tax on deposits in foreign banks

Government may levy wealth tax on deposits in foreign banks

Moneylife Digital Team | 21/02/2012 01:12 PM | 

Deposits in banks located outside the country may attract wealth tax, as part of government's drive to unearth black money. The proposal is part of the Direct Taxes Code (DTC) bill which is being scrutinised by a Parliamentary panel

New Delhi: Deposits in banks located outside the country may attract wealth tax, as part of government's drive to unearth black money, reports PTI quoting the finance ministry.

The proposal is part of the Direct Taxes Code (DTC) bill which is being scrutinised by a Parliamentary panel.

"For the purpose of levy of wealth tax, taxable assets have been defined to include deposits in banks located outside India in case of individuals, unreported bank deposits in case of others..." the ministry said, adding this is one of "specific new measures for unearthing black money".

The DTC also proposes a "reporting requirement ... making it obligatory on the part of resident assessees to furnish details of their investment and interest in any entity outside India," the document said.

Besides, an assessee's interest in a foreign trust or a company is also proposed to be made taxable assets under the new tax regime, it said.

The Bill proposes to impose a wealth tax of 1% on the net assets exceeding Rs1 crore.

The government is hoping for approval of the measure by Parliament in the next fiscal. Pending Parliamentary nod, some of the provisions may be included in the budget to be presented on 16th March.

The Bill, introduced in the Lok Sabha in August 2010, proposes to overhaul the over 50-year old Income Tax Act.

At present, wealth tax contributes a meagre amount to the government kitty. For the current fiscal, the only Rs635 crore is targeted from this source out of the total tax revenue of Rs9.32 lakh crore.


Post Comment

Comment

1 Comment
Suresh Prasad

Suresh Prasad 2 years ago

Let the DTC come...!!!!!!!!!!!

As DTC will be more easy and simple to understand for the general public.

http://www.aubsp.com/2011/07/definition-...

Reply »Link » Report abuse
X
Moneylife Magazine
Daily Newsletter

1,00,000 Readers

Follow Moneylife
DNL facebook icon DNL linked in icon DNL twitter icon DNL youtube icon DNL rss icon

What's your say?

Do rising prices of vegetable affect your monthly budget?
Yes
No
Can't Say
 
Enter Code : secure code
    change code
VOTE

What you said

How you file your income tax returns?

Thanks for casting your votes! View Previous Polls