An important form of direct tax legislation, wealth tax is tax levied on various benefits incurred from property ownership. Every year, a certain amount of tax is to be paid by the property-owner, corresponding to the market value of the property owned. It is immaterial whether the taxable property yields any income of its own or not. Owing to the broad connotation of the term �wealth�, property tax, capital transfer taxes (inheritance tax, estate tax and gift tax), endowment tax and capital gains taxes are also sometimes considered as �wealth taxes�.

Properties under Wealth Taxation
In India, w.e.f the assessment year 1993-94, wealth tax can be imposed only on certain specified assets. Listed below are the various properties which call for the payment of wealth tax in India.

Guest house or any other house (including farm house) within 25 km from the local limits of any local body. However, it does not include a house which has been allotted to an employee, an officer, or a director of a company who is in the whole time employment of that company and draws a gross annual salary of less than Rs 5, 00,000. The scheme also exempt a house used for residential or commercial purposes and which forms part of stock-in-trade or which is used by the person for his business or a residential property let out for at least 300 days in the year. Moreover, a house or part of a house or a plot of land measuring up to 500 sq m, belonging to an individual or a HUF (Hindu Undivided Family), doesn’t fall under the scheme of wealth tax imposition.
Jewelry or gold (except those used as stock-in-trade).
Motor cars (excepting those engaged in the business of running them on hire).
Yachts, boats and aircraft (excluding those used for commercial purposes).
Hoarded cash in excess of Rs. 50,000 held by individuals or HUFs. It also includes cash stockpiled by any person and not recorded in the books of account.
Urban land (It doesn’t include lands on which any form of construction work is prohibited or land occupied by any building constructed with approval or land used for various industrial purposes. It also exempts land held as stock in-trade for ten years.)