i would like to know how to valuate a flat as per schedule III of wealth tax act. Suppose the area of flat is 200 sq. and the value per sq. is 50/-.
i would like to know how to valuate a flat as per schedule III of wealth tax act. Suppose the area of flat is 200 sq. and the value per sq. is 50/-.
Arvind Sharma
(ACA)
(1432 Points)
Replied 29 April 2012
If the flat is rented (for less than 300 days), then Annual Rent has to be calculated and shall be compared with Municipal Value., higher shall be taken as GAV (Gross Annual Value)., the same shall be reduced by Municipal tax (paid or not) and 15% of GAV as adhoc deduciton to get NAV.., and there are further adjustment.
And where, flat is NOT let out., Municipal Value shall be taken as GAV.
Flat let out for 300 or more days is not Asset as per Sec 2(ea) of the Act..
Hoever, since you have provided on one rate., (is it market rate or municipal value).. I can not provide value of that Flat for Wealth Tax purpose..
Anumanchipalli Sathikonda
(Tax Consultant)
(1349 Points)
Replied 29 April 2012
Mr.Araviind Sharma
Ms.Anupama is asking about valuation as per Part B of Schedule III of Wealth Tax Act, 1957 - Valuation of Immovable Property.
Best Wishes
Sathikonda
Arvind Sharma
(ACA)
(1432 Points)
Replied 29 April 2012
Search for Municipal Value... There will be some municipal tax liability, which is also needed..
GAV Municipal Value
-) 15% of GAV xxxx
-) Municipal Tax Due xxxx
NAV (A) xxxx
Multiplier (B) 12.50
Value of Flat (A * B) xxxx
And above is as per Part B of Schedule II of the Wealth Tax Act
Here, you can find detailed provision about Valuation
/forum/valuation-of-assets-under-wealth-tax-act-1957-60124.asp
DIPESH VASA Helping Hand!!!!!
(CA FINAL )
(441 Points)
Replied 03 May 2012
Dear
For your information it shall be exempt u/s 5(vi)
please check and clarify me whether i am right
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