CA Sandeep Kanoi
It its pre-budget memorandum ICAI has submitted following recommendations related to wealth tax :-
Taxable Wealth – to exempt motor cars –Online GST Certification Course by TaxGuru & MSME- Click here to Join
The amendment in the definition of “assets” was made by the Finance Act, 1992 with a view to promote investment in productive assets. In line with intention of the lawmakers, motor cars used for all commercial purposes i.e. whether in business or profession should be excluded from the definition of “assets” since they are productive assets.
Increment in Cash Limit
Cash in hand limit should be increased from Rs. 50,000 to Rs. 2, 50,000.
Enhancement of the Basic Exemption limit
The basic exemption limit under the Wealth tax is Rs. 30,00,000. There has been a tremendous rise in the value of properties in last few years, it is therefore, suggested that the basic exemption limit, beyond which wealth tax is charged be enhanced to Rs. one crore.