Vide Notification No. 32/2014 dated 23-06-2014, CBDT has made mandatory filing of Wealth Tax Return only by electronic means for certain persons including Company and an assessee being individual or HUF who is liable to audit u/s 44AB.

From Assessment Year 2014-2015 onwards, Company and an assessee being individual or HUF who is liable to audit u/s 44AB are required to furnish Form BB (Return of Net Wealth) electronically under digital signature. Some of the important points are:

  1. New wealth tax return form BB (E-Filing) shall be applicable from assessment year 2014-15 for Years Prior to this Form BA will continue to remain applicable.
  2. E filing of wealth tax return is mandatory for all type of persons for assessment year 2014-15 onwards except for  Individual / HUF to whom provision of section 44AB (tax audit) is not applicable in assessment year 2014-15.
  3. Individual / HUF to whom provision of section 44AB (tax audit) is not applicable in assessment year 2014-15 may file wealth tax return on paper form.
  4. Exemption to Individual / HUF from e-filing of form BB is granted only for AY 2014-15.so from next year (AY 2015-16) all person are required to e file wealth tax return with digital signature.
  5.  Form BB shall not be accompanied by any document i.e.- statement of computation of tax payable, valuation report of registered valuer, proof of tax or interest deposit.​

FAQ on Wealth Tax

Q. What is Wealth tax and on whom and when it is applicable?

A. Wealth Tax is applicable on Individual, HUF and a company if the net wealth of such person exceeds Rs. 30 Lakh. Wealth tax is charged @ 1% on net wealth exceeding Rs. 30 Lakh.

Q. What is the meaning of net wealth?

A. Net wealth means assets minus debt incurred for such asset.

Q. What is the meaning of asset as per Wealth Tax Act?

A. Asset includes:

  • Motor Cars (Other than used by the assessee in the business of running them on hire or used by the assessee as stock in trade)
  • Yachts, boats and aircrafts (other than used by the assessee for commercial purposes)
  • Jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal. (other than used by the assessee as stock in trade)
  • Any building or land (with some exceptions like):

o   One residential home is exempt from Wealth Tax or urban land measuring 500 sqm or less.

o   Any residential property which has been let out for a minimum period of 300 days in the previous year

o   Any house occupied by the assessee for the purpose of any business or profession carried on by him

o   Commercial establishments or complexes

  • Cash in excess of Rs. 50000 in case of individual or HUF
  • Deemed Assets i.e assets transferred without consideration to family etc.
  • Assets of minor child barring some exception
  • Value of assets in partnership firm to be clubbed with the assets of partner

Q. What is the last date of filing return?

A. Last date to file the return is:

  • 31st July for Individuals or HUF
  • 30th Sep for Company and individual or HUF whose accounts are required to be audited u/s 44AB

Q. what can happen if I do not pay the tax or file the return?

A. Penalties:

  • Belated or revised return can be filed within one year from the end of assessment year after paying 1% per month of tax as penalty for delay.
  • Penalty upto 100% of tax in case of non-payment of wealth tax
  • Penalty upto 500% of tax in case of concealment of wealth tax
  • In case of willful default, imprisonment upto 7 years can be imposed

(Author CA Rahul Jain is Partner in Delhi Based CA firm RPMD  & Associates and can be reached at info@rpmd.in)

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One response to “Mandatory E-Filing of Wealth Tax Return and FAQ”

  1. Himani says:

    In case of company who is required to audit under transfer pricing, so due date of income tax return is 30th November. For what will be the due for wealth Tax return whether 30th september or 30th November, because no date is mentioned under wealth tax act. In wealth tax, it is written only that due date is same as of income tax return.
    Please guide me in this regard.

    Thanks
    Himani

  2. srinivasan says:

    As wealth tax is abolished from assessment year 2016-17, is it still necessary individuals not subject to tax audit should efile wealth tax return for assessment year 2015-16 with digital signature? Or paper filing is allowed for this last year of wealth tax return?

  3. sanket bohra says:

    sir, A Company or Individual how many return file for that day mean he was not file return last same year then he will be file in this assessment so how many year he can file return …..2 year or more than 2 year

  4. PANCHSHEEL says:

    I HAVE BY MISTAKE FILED MY WEALTH TAX RETURN FOR ASST:2013-14 TWO TIMES WITH TAXES
    NOW HOW CAN I GET REFUND OF MY TAXES PAID TWICE FOR THE SAME ASST YEAR?

  5. Rajesh says:

    Whether e filing of wealthtax return for FY 2014-15 for individual is made madatory or one more year manual filing allowed.

  6. Mohan says:

    I have a house and 450 square metre urban land worth 150 lakhs. The house is given for rent. So can I claim exemption from wealth tax for the urban land since it is less than 500sqm. and the house is given for rent?

  7. Neha says:

    Ranu, Pragya, Ragini as asked by you.

    Firstly, under wealth tax three persons are involved Individual, HUF, Company.
    Secondly, wealth tax is charged on net wealth not on net worth.For charging wealth tax, definition of asset is given u/s 2(ea) which includes- i)Building and land appurtenant thereto,
    ii)Motor Cars,
    iii)Jewellery,bullion,etc,
    iv)Yachts,boats and aircrafts,
    v)Urban Land,
    vi)Cah-in-hand.

    So, it is not relevant that net worth is lees than 30 Lacs.

  8. Ranu Jain says:

    person having Net worth below 30 Lakhs not required to file wealth tax return.

  9. M N SHAH says:

    Is surrender value of life insurance policies & ULIP based policies are liable under wealth tax ?

  10. M N SHAH says:

    Is Insurance policies surrender value & ULIP based insurance policies are liable under wealth tax ? If yes then please which is the cut off date for Ass.Year 2014-15. Please let me inform if it is exempted.

  11. PRAGYA PORWAL says:

    Is it compulsory for a tax audit assesses, who is not having wealth of Rs. 30 Lakhs or more, to file a wealth tax return.

  12. ragini says:

    Please tell me whether is it necessary to file wealth tax returns for individuals/huf/companies who are covered under section 44ab and who’s wealth does not exceed Rs. 30 lacs.

  13. Rupal says:

    If any assessee has Assets Covered under Wealth Tax Act are required to file Wealth Tax return

  14. ashish shah says:

    it is compulsory to file wealth tax return for assessee having networth exceed Rs.30.00 lacs from asst.year 2015-16 or having transaction during the year exceed 30.00 lacs.

  15. ashutosh says:

    assessee whose net worth is below 30 lakhs is also liable to file wealth tax return ?

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