Wealth tax act part1

CS 4887 views 24 replies

Wealth tax :-

As per section 3(2) of the wealth tax 1957, from 1993-94 , every individual , HUF and company is liable to pay wealth tax. Wealth tax is charged on the basis of

  • The quantum of net wealth chargeable to tax under the Act.
  • The time aspect  i.e. Net wealth on valuation date
  • Location of asset or place aspect
  • Ownership aspect.

Wealth tax is charged on the assets in excess of 30 lacs at the rate of 1%.

What is called as wealth  ….

Let’s  take an example .. A wealthy person like Tata birla  who has 10 houses , 15 cars. It has a private yacht, boat and also a private plane or aircraft. Her wife wears new jewellary on every occasion. His cash balance is always full of money. He has urban land around the world.

 

  • House – whether residential or commercial purpose or otherwise used as guest house.The let out property must be given for minimum period of 300 days during the p/y.
  • Jewellary – not includes Gold deposit bonds issued under Gold deposit scheme notified by CG.
  • Cash must be in excess of Rs.50000

 

Individual includes :

  • A natural person/human being
  • Hindu deity
  • Group of individual, being trustees of trust.
  • AOP, where share of members are unknown.

 

HUF :-

Includes a joint Jain family but not a Hindu converts into Christianity through a Hindu law of succession.

Company :-

  • Any Indian company
  • Any body corporate incorporated by or under the law of a company o/s india
  • Any institute ,association or body which is taxable under Income tax act 1922.
  • Any institute ,association or body whether incorporated or not whether Indian or non Indian , which is declared by general or special order of the board to be a  Co.

Person not liable to wealth tax:-

  1. Any company registered under section 25 of the Co. Act 1956
  2. Any cooperative society
  3. Any social club
  4. Any political party within the meaning of explanation to section 13 A of the Income Tax Act
  5. Any mutual fund within the meaning of section 10(23D) of the income tax act.

 

Incidence of wealth tax :-

Resident and ordinary resident :-  All assets – debts in India

                                                All assets and liabilities outside India will also be counted

Not ordinary resident and non resident :-

                                                All assets – debts in India.

Valuation DATE  

The valuation date for wealth tax is the last day of the previous year as defined in the Section 3 of Income tax act ( Banarasi dass v/s CWT )

Regards

Renu

Replies (24)

Can some 1 tell me wht's happening here ....

  1. I had numbered  .....But its not showing any no like 1,2,3 or a,b, c

  2. All colours are missing ...

 

 

In short why its not same when I copy paste ...As I used to do it earliersurprise....

nice 1 dear...

very simple nd easily understandable explanation by you.....

nd nw dnt try to paste again ha....laugh

ha ha

keep smiling nd also keep sharing

@ krishna ...

But its so  tough to write here na surprise...so m used to write on wrd and then copy paste the same ..

Now I wil do colors here ...wink

sure dear...

definately try ....nd never give up......

u hv shared ur knoweldge dats v.good....nd presentation also matters...but at d end knowledge works..

so never feel bad...ur presentation w/o colours looks also good......smiley

Very Nice Renu....

Nicely explained all the points.....

With colours and numbering, your presentation looks excellent, but it doesn't mean that currently, it is looking bad.....

It is looking good without colours also....

very useful RENU ji,,,

thank for sharing....

 

''It is looking good without colours also''...right said Nabeel.. Agree with u..

Renu-its really gud and nice.. thnx for sharing with us.. we will look forward for your efforts.

Thnx.

thanks for motivating me ...smileyheartangel

gud work

thanks for sharing

clean and clear explanation.................. U tried to colour your presentation. But

doesn't matter. good effort @ Renu. Nice work. Thanks for sharing.yes

It's happening with me too, Dear Renu. May be the .asp environment does not support the features of MS Office when we Copy-Paste, resulting in loss of the original format. I have, therefore, started trying two different things -

 

1. Write simply in MS Word and then decorating it in the Main Text Box here. But I don't get my chosen Fonts ( e.g. Lucida handwriting). It's pretty cumbersome though.

2. Where it involves uploading pictures, I've resorted to add them as Attachments.

 

But the problem is of recent origin. Earlier it was not like this. That's why I'm a bit sceptical about the above explanation of mine.

 

I request CCI Technical wing to take care of this problem, so that the effort put in creating a colorful presentation doesn't go wasted.

@ dada ...

truly agree ...

waise technical bhasha ka gyan dene ke liye  tamaro aabhar ..angel

 

CCI sun lo ......................yes

Very useful and easily understandable...........Great effort Renu,,,KEEP IT UP...GOD BLESS YOU

very useful one


CCI Pro

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