new delhi the direct taxes code proposes to substantially raise the threshold limit for levy of wealth tax to rs 50 crore from rs 30 lakh a suggestion if accepted would save many people from paying tax on their wealththe rate of wealth tax according to the draft direct taxes code should be reduced to 025 per cent from one per cent currentlythe wealth tax is levied under the wealth tax act which is proposed to be subsumed in the new direct taxes code that will replace the income tax act 1961finance minister pranab mukherjee in the budget for 200910 had doubled the threshold limit for levy of wealth tax to rs 30 lakhgiving the rationale for continuing with the wealth tax the code said wealth carries with it a degree of security independence influence and social powerwealth constitutes and independent tax base which can be legitimately taxed through an annual tax on net wealthwealth tax the code said also helps to partially capture the income tax avoided or evaded