The proposal to widen the scope of the wealth tax forms part of the direct taxes code bill, which are likely to be incorporated in the budget for 2012-13, pending parliamentary approval.

"For the purpose of levy of wealth tax, taxable assets have been defined to include deposits in banks located outside India,” local media quoted the finance ministry as saying, adding this is one of "specific new measures for unearthing black money".

Other assets coming under the wealth tax liability include cars, yacht, helicopters, aircraft, jewellery, bullion, archaeological collections, paintings and sculptures. Watches exceeding Rs 50,000 ($1,000) and cash in excess of Rs 2 lakh would also attract the wealth tax.

As per the proposal the tax will be levied at one per cent on taxable assets exceeding Rs 1 crore. The current limit is Rs 30 lakh.