Wealth tax

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arvind gupta

arvind gupta (Querist)
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09 August 2011 what is wealth tax. today wealth tax is mantadory .what is rules for wealth tax

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 August 2011 If a person having net wealth more than Rs 30.00 lacs he has to file his wealth tax return. Person means, Individual, HUF and
Company only. Other assessees like firms societies etc are not liable for wealth tax.
.
Wealth tax defines wealth in a little-bit different manner.
It defines the assets. Assets means assets
forming part of the wealth. For that you can refer Section 2(ea).

One residential House of the assessee is not an asset. His business place is also not an asset. Other properties may or may not be treated as asset. Likewise there are certain defined assets. Stock in Trade, Debtors etc are not asset.

Any loan or liability incurred against the taxable assets is also deductible.
Precisely it can be computed as under-
Net Wealth
=Assets +Deemed Assets-Exempted Assets-Debts owed.

It is levied at the rate of 1% of the amount exceeding Rs. 30.00 lac.

The valuation plays a great role in deciding the value of the assets. Value as on the valuation Date i.e. 31.03.xxxx
is taken into consideration and where ever required provisions for getting valuation reports are also to be followed.
This is a brief note about Wealth Tax.

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