Taxes

India — Tax: Wealth Tax

India abolished its wealth tax in the Union Budget 2015-16, effective 1 April 2016 — the government found the cost of collecting wealth tax exceeded the revenue it generated (roughly ₹1,008 crore in 2013-14). In its place, an additional surcharge was introduced on high-income earners (individuals earning above ₹1 crore annually pay a surcharge, since revised to as high as 15% depending on income bracket). As of 2026, India has no wealth tax and there is no indication of reinstatement.

Income Tax Department of India · Last verified 2026-07-20

Key Facts

  • Wealth tax was abolished effective 1 April 2016 (announced in Budget 2015-16).
  • Replaced with a surcharge on high-income earners (above ₹1 crore annual income) rather than a tax on net assets.
  • As of 2026, no wealth tax exists in India and none is proposed.

Common Mistakes

  • Assuming India still levies a wealth tax based on outdated guides — it was abolished in 2016 and replaced by an income surcharge mechanism instead.

Related Topics

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