Doing Business in India - RSM Austria
Doing Business in India - RSM Austria
Doing Business in India - RSM Austria
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entered <strong>in</strong>to <strong>in</strong> a recognized stock exchange; or (b) sale of a unit of an equity<br />
oriented fund of specified mutual fund. The value of taxable securities transaction<br />
shall be:<br />
i. the aggregate of the strike price and the option premium, <strong>in</strong> case of taxable<br />
securities transaction relat<strong>in</strong>g to derivative be<strong>in</strong>g “option <strong>in</strong> securities”;<br />
ii. the price at which “futures” is traded, <strong>in</strong> case of taxable securities transaction<br />
relat<strong>in</strong>g to derivative be<strong>in</strong>g “futures”; and<br />
iii. the price at which securities are purchased or sold, <strong>in</strong> case of any other taxable<br />
securities transaction.<br />
Every recognized stock exchange shall collect the securities transaction tax from<br />
every person be<strong>in</strong>g a purchaser or a seller who enters <strong>in</strong>to a taxable securities<br />
transaction <strong>in</strong> that stock exchange.<br />
8.2 Wealth Tax<br />
Wealth-tax <strong>in</strong> <strong>India</strong> under the Wealth-tax Act is payable each year on the taxable<br />
wealth and depends upon residential status and on citizenship.<br />
Taxable wealth <strong>in</strong>cludes residential house (other than residential house let out for a<br />
m<strong>in</strong>imum period of 300 days dur<strong>in</strong>g the year) and farm houses, motor cars,<br />
jewellery, bullion, yachts, aircrafts, urban land, cash exceed<strong>in</strong>g specified limits as<br />
reduced by debts owed and <strong>in</strong>curred <strong>in</strong> relation to such assets.<br />
However, exemption is available to <strong>in</strong>dividuals and HUFs for one house or part of a<br />
house or plot of a land compris<strong>in</strong>g an area of five hundred square meters or less.<br />
A resident <strong>India</strong>n citizen pays tax on his global wealth. If he is a “resident but not<br />
ord<strong>in</strong>arily resident” or a non-resident or a foreign citizen, then his <strong>India</strong>n wealth is<br />
charged to tax at normal rates and foreign wealth is totally exempt.<br />
Wealth-tax <strong>in</strong> case of <strong>in</strong>dividual and companies for the f<strong>in</strong>ancial year 2009-10 will be<br />
charged @ 1% of the net taxable wealth exceed<strong>in</strong>g Rs. 30,00,000.<br />
The due dates for fil<strong>in</strong>g wealth-tax returns are same as for fil<strong>in</strong>g Income-tax returns.<br />
8.3 Gift Tax<br />
Gift tax has been abolished with effect from 1 October 1998.<br />
8.4 Estate Duty<br />
Estate duty has been abolished s<strong>in</strong>ce 16 March 1985.<br />
8.5 Interest Tax<br />
Interest-tax has been abolished with effect from 1 April 2000.<br />
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