Wealth tax is a direct tax, which is imposed on the net wealth of the assessee. It is a tax
on the bene ts derived from ownership of property. The levy of wealth tax was introduced in India
following a suggestion made by Dr. Kaldor in his report on Indian tax reforms.
The tax is to be paid year after year on the same property on its market value, whether or not
such property yields any income. Wealth tax, in India, is levied under the Wealth Tax Act, 1957 as
well as the Wealth tax Rules framed there under.