MINIMUM 30 LAKH NEEDED TO BE CALLED' WEALTHY'

The government today doubled the threshold for calling a person or entity wealthy, saying the wealth tax would be imposed only on those having a net wealth exceeding Rs 30 lakh.

Under the existing provisions, wealth tax is charged on "every individual, Hindu undivided family and company at the rate of one per cent" of the amount by which their net wealth exceeds Rs 15 lakh.

However, Finance Minister Pranab Mukherjee today proposed to amend the relevant section of the Wealth Tax Act. Pursuant to this, for every year commencing on and from April 1, 2010, the one per cent wealth tax will be charged on the amount by which the net wealth exceeds Rs 30 lakh.

Besides, the Finance Minister has also proposed to amend certain provisions related to agreement for avoidance of double taxation with respect to wealth tax.