Section 2(m) of WEALTH TAX ACT 1957 :-
net wealth means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee [on the valuation date which have been incurred in relation to the said assets ;
What shall be the NET WEALTH ???????
Situation 1 )
Builing (Schdule III value) Rs 80,00,000
Motor Car (Schdule III value) Rs 20,00,000
Jwellary (Schdule III value) Rs 30,00,000
GROSS WEALTH Rs 1,10,00,000
Debt
Builing (Schdule III value) Rs 1,00,00,000 ( Secured Building)
Motor Car (Schdule III value) Rs 10,00,000 ( Secured on Motor Car)
Jwellary (Schdule III value) Rs 8,00,000 ( Secured on Jwellary Only)
TOTAL DEBT Rs 1,18,00,000
NET WEALTH U/S 2(m)
a) Rs 12,00,000 (Rs110-98); Debts allowed as Rs 98,00,000 ( 80+10+8 lakhs )
b) NIL (Rs 110-Rs118 But Restricted to Rs 1,10,00,000)
c) OR Else ???
Regards
Amit Ingale. (ingale_amit @ yahoo.co.in)
CAclubindia
