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- Assuming India still levies a wealth tax based on outdated guides — it was abolished in 2016 and replaced by an income surcharge mechanism instead.