|Wealth tax is a direct tax that is charged on the net wealth of the assessee. Wealth is a wide term and that is why wealth tax is also referred as property tax, capital transfer taxes, endowment tax and capital gains taxes. Wealth tax is tax on the benefits derived from property ownership. The tax is required to be paid every year on the same property on its market value. Chargeability to this tax depends upon the residential status of the assessee.
In India, Wealth tax is levied under Wealth-tax Act, 1957. Under the Act, the tax is charged in respect of the wealth held during the assessment year.