Wealth tax returns

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KIRTI

KIRTI (Querist)
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27 October 2011 Dear Sir,

Kindly advise the new wealth tax slab for F.Y 2010-2011.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 October 2011 Wealth tax is imposed @ 1 percent on the value of specified assets held by the taxpayer on the valuation date (31 March) in excess of the basic exemption of3,000,000.

Tax rate is 1% on amount by which ‘net wealth’ exceeds Rs 30 lakhs from AY 2010-11. (Till 31-3-2009, the limit was Rs 15 lakhs). No surcharge or education cess is payable.

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CA.VIDHYADHAR.SUDA

CA.VIDHYADHAR.SUDA (Expert)
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27 October 2011 Tax rate is 1% on amount by which ‘net wealth’ exceeds Rs 30 lakhs from AY 2010-11. (Till 31-3-2009, the limit was Rs 15 lakhs). No surcharge or education cess is payable.

Also, DTC (Direct Tax Code) has proposed to increase the threshold limit for wealth tax significantly, from Rs 30 lakh to Rs 1 crore which should be applicable from April 1, 2012.

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KIRTI

KIRTI (Querist)
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27 October 2011 Dear Mr.Sanjay,

Thanks for your swift reply.
Pls advise if House Property to be taken into wealth tax.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 October 2011 Guest house, residential house or commercial building - The following are treated as “assets” - (a) Any building or land appurtenant thereto whether used for commercial or residential purposes or for the purpose of guest house (b) A farm house situated within 25 kilometers from the local limits of any municipality (whether known as a municipality, municipal corporation, or by any other name) or a cantonment board [Section 2(ea)(i)]

A residential house is not asset, if it is meant exclusively for residential purposes of employee who is in whole-time employment and the gross annual salary of such employee, officer or director is less than Rs. 5,00,000.

Any house (may be residential house or used for commercial purposes) which forms part of stock-in-trade of the assessee is not treated as “asset”.

Any house which the assessee may occupy for the purposes of any business or profession carried on by him is not treated as “asset”.

A residential property which is let out for a minimum period of 300 days in the previous year is not treated as an “asset”.

Any property in the nature of commercial establishments or complex is not treated as an “asset”.

One house or part of a house, or a plot of land not exceeding 500 sq. meters in area is exempt. A house is qualified for exemption, regardless of the fact whether the house is self-occupied or let out. [Section 5(vi)]

KIRTI

KIRTI (Querist)
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27 October 2011 Hi Pls advise the prescribed FORM to file wealth tax return in case of individuals.