(1) ABC Ltd. (a Company) is planning to file its wealth tax return for the financial year 2008-09. Till upto the financial year 2007-08 the company has filed its wealth tax return on the basis of income tax WDV.
The company is in dilemma that – what will the value of wealth for the purpose of wealth tax liability determination
1. Value and Depreciation both as per Companies Act, 1956; or
2. Value and Depreciation both as per Income Tax Act, 1961; or
3. Value as per Income Tax Act, 1961 and Depreciation as per Companies Act, 1956; or;
4. Value as per Companies Act, 1956 and Depreciation as per Income Tax Act, 1961;
(2) If the assessee is individual and he is not claiming any depreciation on the motor car due to its uses it in personnel purpose. Is he liable to pay tax on whole cost of the motor car every year or any depreciation will be allowed for the purpose of to determine the wealth tax liability or take valuation every year for its motorcar or insurance value.
SItaram Agrawal
CAclubindia
