Please solve the following question...WEALTH TAX

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Kashvi

231 Points Joined June 2009

To find the net wealth of Rajan, a resident individual as on 31st march 2010-

i) He has a property at Delhi valued at Rs 20,00,000 which is used for business purposes.

ii) Vehicles for personal use motor car Rs 8,40,000,motor van Rs 4,50,000 and jeep Rs 3,54,000

iii) Cash in hand Rs 350000

iv) Jewellery Rs 15,60,000 and

v) He had transferred an urban house plot in february 2010 in favour of his Niece, which was not revocable during her lifetime. His neice died on 14th March 2010 and Rajan could get the title of plot re-transferred to his name on 15th april 2010. Market Value of house plot as on 31st March 2010 is Rs 14,10,000

Replies (2)

CA Amit Kanani

Practicing CA

338 Points Joined September 2008

Net wealth of RAJAN will b 2750000 (840000+350000+1560000)

House in delhi is used for business so, it will not include in net wealth. and in case of plot he is not owner on 31st march so, it will not include. Further, one house or urban plot of 500 sq. mt. is exempt in case of individual and HUF.

CA.G.Muguntha Narayanan

Internal Auditor at TVS Motors

2195 Points Joined January 2010

Dear Kashvi,

the gross wealth will be Rs.3504000(840000+450000+354000+1560000+300000(cash-350000-50000))

Motor car does not include car alone. it even includes van and jeep. The house is taxable because the power to revoke arises on the assessee on 14 th march itself.However, the same is exempt in the case of individual