NRIs CORNER- WEALTH TAX
The most common fallacy amongst NRIs is that they are exempt from almost all taxes in India and particularly not Wealth Tax liability as regards their assets in India.
NRIs are to pay Wealth Tax on chargeable assets in India i.e. immovable properties, jewellery and vehicles. The subject is discussed at length under the following chapters :
Many NRIs believe that they are not liable to Wealth Tax at all. This is not true. Like Residents, NRIs are also liable to pay Wealth Tax in India.
The assets chargeable to tax are : immovable property (other than one residential house, or plot of land having area 500 square meters or less), jewellery , cash exceeding Rs 50,000 and propelled vehicles i.e. cars etc.
All other assets are free from Wealth Tax.