Wealth Tax

Section 55A- Reference to Valuation officer

Income Tax - Article discusses about Basic provisions, Circumstances in which reference under section 55A of Income Tax Act, 1961 can be made to valuation officer, etc....

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Procedure for Correction of Income Tax Payment challan

Income Tax - Revised Procedure from 1st September 2011 to get Income Tax , TDS, Self Assessment Tax, Advance Tax, Wealth Tax and Other Direct tax Payment Challan corrected / Rectified which were paid at bank in Physical Mode and time period within which correction request can be made along with conditions , Procedures for the same and Format of the ...

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Taxability of Income from Real Estate

Income Tax - Real Estate is an ever green investment option in India and it has always given good returns. It can be a residential or commercial property. Real Estate gives recurring income in form of rent and appreciation in value in case of re-sale. As it gives good return, so taxability of income earned from real estate too arise. Taxability of inc...

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All about Wealth Tax Act, 1957

Income Tax - Article discusses about Basic provisions, Following entities are not liable to pay wealth-tax, Manner of computation of net wealth, Wealth-tax and residential status,  Assets covered/exempt under wealth-tax, Net wealth to include certain assets, Valuation of asset, Some of the significant provisions of Wealth-tax Law...

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How to file online Rectification Request for Wealth Tax Return

Income Tax - To file your Rectification request online for Wealth Tax Return files online on Income Tax Online Portal , you should be a registered user in e-Filing application. Below listed e the steps to file Rectification....

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Declaration of Assets & Liabilities in new ITR forms

Income Tax - ITR forms for A.Y. 2016-17 have been rationalised by making the Schedule AL applicable to individuals and Hindu undivided family (HUFs) whose total income for the previous year 2015-16 exceeds Rs.50 lakh. The objective of AL schedule is to capture details of assets and liabilities and not the net worth. ...

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Non-applicability of Wealth-tax for November, 2015 CA Final Examination

Income Tax - The Finance Bill, 2015, introduced in the Parliament on 28th February, 2015, has proposed to abolish the levy of wealth-tax under the Wealth-tax Act, 1957 with effect from assessment year 2016-17. The Finance Bill, 2015 would be enacted in May 2015, after it is passed by both the Houses of the Parliament and receives the assent of the Pre...

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CBDT releases Form BB (Return of Net Wealth) for AY 2014-15

Income Tax - CA Sandeep Kanoi A 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 for assessment year 2014‐15 and onwards. [Refer Notification No:32/2014 dated 23/06/2014]. Some of the Important Feature related to Filing of For...

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I-T returns should also include wealth tax returns – TARC

Income Tax - Filing of tax returns o    I-T returns should also include wealth tax return so that the taxpayer need not separately file wealth tax returns. These returns should also be processed together in the CPC at Bengaluru. o    The disclosures in the return should include a brief mention of the issues on which there has been […]...

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Rates of Gold and Silver as on 31.03.2013

Income Tax - We needs rates of Gold and Silver for Wealth Tax Valuation Purposes as on 31.03.2013 to correctly value gold and silver as on 31.03.2013 but since  no trading was taken place in Gold and Silver on 31.03.2013 so we will take the rate of last trading  day (30.03.2013) of Financial Year 2012-2013 as the rate […]...

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No addition for jewellery for mere non-match with description in Wealth-tax returns

Rajkumar B. Agarwal Vs DCIT (ITAT Pune) - Rajkumar B. Agarwal Vs DCIT (ITAT Pune) No addition on account of jewellery items on seized documents did not tally with description of jewellery in Wealth-tax returns in case total weight of jewellery was same Conclusion: Where total gold jewellery in weight found at the time of search matched with...

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Wealth Tax Payable on Land Situated within Corporation Limit of City by Mysuru’s Erstwhile Royal Family

CIT Vs Smt. meenakshi devi avaru (Karnataka High Court) - CIT Vs Smt. Meenakshi Devi Avaru (Karnataka High Court) Protective, precautionary or alternate assessment is an assessment which is made ex- abundanti cautela by the Assessing Authority and is therefore called protective or Precautionary Assessment or alternative assessment. When the Department has ...

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Wealth Tax leviable on land on which Construction is under process

The Commissioner Of Wealth Tax Vs Shri. K. C. Rajan (Kerala High Court) - Only a land in which the building is completely constructed stands excluded under the exclusionary provision under Explanation (1 )(b)(ii) of Section 2(ea) of Wealth Tax Act, 1957...

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Wealth Tax not payable on Assets already sold & considered in capital gain Tax

Smt. Boda Sarada Reddy Vs Asst. Commissioner of Wealth Tax (ITAT Hyderabad) - It was the contention of the AO in Income Tax proceedings that assessee had indeed handed over the possession of the property as on 01-04-2006, which led to assessing the capital gains arising on the transfer of that property in AY. 2007-08. Therefore, as on 31-03-2007, the property was no longer in...

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Wealth Tax: Non striking irrelevant column in notice issued u/s 18(1)(c) renders notice invalid

T.S.Kalyana Chakravarthy Vs Dy.Director of Wealth Tax (ITAT Visakhapatnam) - The Ld.CWT(A) should have struck off the irrelevant column and made known the assessee by mentioning for which reason the penalty was initiated. Penalty u/s 18(1)(c) of WT Act are parimateria to Income Tax Act 271(1)(c). As per settled case laws non striking the irrelevant column in the notice issue...

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Compounding of Offences under Income Tax Act, 1961 & Wealth tax Act, 1957

F.No. 285/90/2013 IT(Inv.V) - (04/09/2015) - F.No. 285/90/2013 IT(Inv.V) Guidelines for Compounding of Offences under Income Tax Act, 1961/Wealth tax Act, 1957 in cases of persons holding undisclosed foreign bank accounts/assets...

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Extension of due date of filing return of wealth for A.Y. 2015-16 to 07.09.2015

F.No.328/08/2015-WT - (03/09/2015) - In view of CBDT order F.No.225/154/2015/ITA-II dated 2.9.2015 issued under section 119 of the Income-tax Act, extending the due date for e-filing returns of income from 31st August, 2015 to 7th September, 2015 in respect of all taxpayers who were required to e-file their returns of income by 31st Au...

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Extension of due date of filing Return of wealth for A.Y, 2015-16

328/08/2015-WT - (27/07/2015) - Central Board of Direct Taxes vide order under section 119 of the Income-tax Act F.No.225/154/ 2015/ETA-II dated 10.6.2015 has extended the 'due date' for filing Return of Income for assessment year 2015-16 in respect of assessees falling under clause (c) of explanation 2 to sub-section (1) of secti...

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Reg. Refund of Wealth Tax Paid on Urban Agricultural Land Used for Agriculture

Circular No. 11/2015-Income Tax - (11/06/2015) - CIRCULAR NO. 11/2015 Prior to amendment by Finance Act 2013, sub clause (b) of Explanation 1 to clause (ea) of section 2 of the Wealth-tax Act 1957 (Act) provided that an urban land shall be chargeable to wealth-tax. This inter alia included land situated in any area which is comprised within the ju...

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Wealth Tax : Chargeability of Interest on self-assessment tax paid

Circular No. 5/2015-Income Tax - (09/04/2015) - CIRCULAR NO. 5/2015, Dated: April 9, 2015 Chargeability of Interest under section 17B of the Wealth-tax Act, 1957 on self-assessment tax paid before the due date of filing of return of net wealth...

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Recent Posts in "Wealth Tax"

Section 55A- Reference to Valuation officer

Article discusses about Basic provisions, Circumstances in which reference under section 55A of Income Tax Act, 1961 can be made to valuation officer, etc....

Read More
Posted Under: Income Tax |

Procedure for Correction of Income Tax Payment challan

Revised Procedure from 1st September 2011 to get Income Tax , TDS, Self Assessment Tax, Advance Tax, Wealth Tax and Other Direct tax Payment Challan corrected / Rectified which were paid at bank in Physical Mode and time period within which correction request can be made along with conditions , Procedures for the same and Format of the ...

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Posted Under: Income Tax |

No addition for jewellery for mere non-match with description in Wealth-tax returns

Rajkumar B. Agarwal Vs DCIT (ITAT Pune)

Rajkumar B. Agarwal Vs DCIT (ITAT Pune) No addition on account of jewellery items on seized documents did not tally with description of jewellery in Wealth-tax returns in case total weight of jewellery was same Conclusion: Where total gold jewellery in weight found at the time of search matched with the earlier declarations made by [&hell...

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Wealth Tax Payable on Land Situated within Corporation Limit of City by Mysuru’s Erstwhile Royal Family

CIT Vs Smt. meenakshi devi avaru (Karnataka High Court)

CIT Vs Smt. Meenakshi Devi Avaru (Karnataka High Court) Protective, precautionary or alternate assessment is an assessment which is made ex- abundanti cautela by the Assessing Authority and is therefore called protective or Precautionary Assessment or alternative assessment. When the Department has any doubt as to the person who is or wil...

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Wealth Tax leviable on land on which Construction is under process

The Commissioner Of Wealth Tax Vs Shri. K. C. Rajan (Kerala High Court)

Only a land in which the building is completely constructed stands excluded under the exclusionary provision under Explanation (1 )(b)(ii) of Section 2(ea) of Wealth Tax Act, 1957...

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Taxability of Income from Real Estate

Real Estate is an ever green investment option in India and it has always given good returns. It can be a residential or commercial property. Real Estate gives recurring income in form of rent and appreciation in value in case of re-sale. As it gives good return, so taxability of income earned from real estate too arise. Taxability of inc...

Read More
Posted Under: Income Tax | ,

All about Wealth Tax Act, 1957

Article discusses about Basic provisions, Following entities are not liable to pay wealth-tax, Manner of computation of net wealth, Wealth-tax and residential status,  Assets covered/exempt under wealth-tax, Net wealth to include certain assets, Valuation of asset, Some of the significant provisions of Wealth-tax Law...

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Posted Under: Income Tax |

Wealth Tax not payable on Assets already sold & considered in capital gain Tax

Smt. Boda Sarada Reddy Vs Asst. Commissioner of Wealth Tax (ITAT Hyderabad)

It was the contention of the AO in Income Tax proceedings that assessee had indeed handed over the possession of the property as on 01-04-2006, which led to assessing the capital gains arising on the transfer of that property in AY. 2007-08. Therefore, as on 31-03-2007, the property was no longer in the possession or ownership of assessee...

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Wealth Tax: Non striking irrelevant column in notice issued u/s 18(1)(c) renders notice invalid

T.S.Kalyana Chakravarthy Vs Dy.Director of Wealth Tax (ITAT Visakhapatnam)

The Ld.CWT(A) should have struck off the irrelevant column and made known the assessee by mentioning for which reason the penalty was initiated. Penalty u/s 18(1)(c) of WT Act are parimateria to Income Tax Act 271(1)(c). As per settled case laws non striking the irrelevant column in the notice issued u/s 18(1)(c) renders the notice invali...

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Wealth Tax on Land, Ownership of which was in Dispute

G. Girish Kumar Vs. Asst. Commissioner of Wealth Tax (ITAT Hyderabad)

Hyderabad bench of Income Tax Appellate Tribunal (ITAT) recently held that wealth tax proceedings cannot be proceed against the assessee when the ownership of the land is in dispute. ...

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No seizure of Jewellery If gross weight disclosed in regular return exceeds jewellery found during search

Mrs. Nawaz Singhania Vs. DCIT (ITAT Mumbai)

Mrs. Nawaz Singhania Vs. DCIT (ITAT Mumbai) Instruction 1916 issued by the Board with regard to seizure of jewellery has inherent foundation of undisclosed portion of jewellery that may be identified in the search. The Instruction No. 1916, therefore is describing the criteria for decision making for jewellery to be undisclosed. According...

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Value declared in Wealth Tax Return cannot be taken as Cost of Acquisition

Commissioner of Income Tax Vs Vasavi Pratap Chand (Delhi High Court)

Court is satisfied that no error was committed by the ITAT in holding that the value declared in the tax return filed by the Assessees under WTA cannot be taken to be the cost of acquisition in the hands of the Assessees....

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Method favourable to taxpayer should be adopted cannot be contended If statute is unambiguous

Bimal Kishore Paliwal & Ors. Vs. Commissioner Of Wealth Tax (Supreme Court of India)

ZIf two reasonable constructions of taxing statute are possible, that construction which favors the assessee must be adopted. The above proposition cannot be read to mean that under two methods of valuation if the value which is favorable to assessee should be adopted....

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Re-Assessment under Wealth Tax Act without supplying reason for same is invalid

Ms. Megha Garg Vs The DCWT (ITAT Delhi)

Briefly the facts of the case as noted in the assessment order are that in this case assessment for A.Y. 2006-2007 has been reopened after recording satisfaction and obtaining approval of Addl. CIT, Range-25, New Delhi, under section 17 of the Wealth Tax Act....

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How to file online Rectification Request for Wealth Tax Return

To file your Rectification request online for Wealth Tax Return files online on Income Tax Online Portal , you should be a registered user in e-Filing application. Below listed e the steps to file Rectification....

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Posted Under: Income Tax |

Declaration of Assets & Liabilities in new ITR forms

ITR forms for A.Y. 2016-17 have been rationalised by making the Schedule AL applicable to individuals and Hindu undivided family (HUFs) whose total income for the previous year 2015-16 exceeds Rs.50 lakh. The objective of AL schedule is to capture details of assets and liabilities and not the net worth. ...

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Posted Under: Income Tax | ,

Interest in leasehold property includible in net wealth of assessee if he exercises power of owner on it

Jay Hind Sciaky Limited Vs DCIT (Bobmbay High Court)

The Hon'ble Bombay High Court in the case of Jaya Hind Sciaky Limited held that the words belonging to as used in sec 40(2) of the Act would include assets in possession of the Company without full Ownership...

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Land eligible for wealth tax exemption even on conversion as non-agricultural if used for agricultural purposes

M.R Pattabhiram (HUF) Vs The Asst. Commissioner of Wealth tax (ITAT Bangalore)

ITAT Bangalore held In the case of M.R Pattabhiram (HUF) vs. The Asst. Commissioner of Wealth tax that mere conversion of land from agriculture to non-agriculture could not be taken as the sole criteria to hold it as a capital asset under section 2(14) of the Income tax act....

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5 Major Reasons Behind Income Tax Notices

Although it’s quite common to receive notices from IT department, people do get scared when they get one. What one needs to know is it’s not as big deal as one believes it to be, and if handled tactfully, one can get rid of any further complications. Following are some common reasons why people recieve […]...

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Posted Under: Income Tax |

Valuation of property covered under Ceiling Act for Wealth Tax cannot be higher than maximum compensation

Sri S.N. Wadiyar (Dead) Through LR Vs Commissioner of Wealth Tax (Supreme Court of India)

Supreme Court held In the case of SRI S.N. Wadiyar (Dead) through LR V. Commissioner of Wealth Tax that a property which is going to be taken over by the Government at a compensation of Rs. 2 Lakhs and is awaiting notification under Section 10 of the Act for this purpose...

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Wealth Tax Exemption for Commercial property available if used for business by others

ACIT Vs M/s. Prasad Machinery Pvt. Ltd. (ITAT Ahmedabad)

In case of ACIT vs. M/s. Prasad Machinery Pvt. Ltd. (ITAT Ahmedabad) assessee was owner of factory building. It allotted certain space therein to its sister concern for enabling it to carry on their business in lieu of charging rent....

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Mandatory e-Filing of ITR / Wealth Tax Returns with or Without Digital Signature for A.Y. 2015-16

Recently we received an email from A CA from Delhi in which he said that Income Tax officers are not accepting ITR 3 and 4 despite no refund and income being less than 5 Lakh. The CA has further mailed that department is not accepting even Manual Wealth tax Return and asking them to file the same online. ...

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Posted Under: Income Tax |

Compounding of Offences under Income Tax Act, 1961 & Wealth tax Act, 1957

F.No. 285/90/2013 IT(Inv.V) (04/09/2015)

F.No. 285/90/2013 IT(Inv.V) Guidelines for Compounding of Offences under Income Tax Act, 1961/Wealth tax Act, 1957 in cases of persons holding undisclosed foreign bank accounts/assets...

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Extension of due date of filing return of wealth for A.Y. 2015-16 to 07.09.2015

F.No.328/08/2015-WT (03/09/2015)

In view of CBDT order F.No.225/154/2015/ITA-II dated 2.9.2015 issued under section 119 of the Income-tax Act, extending the due date for e-filing returns of income from 31st August, 2015 to 7th September, 2015 in respect of all taxpayers who were required to e-file their returns of income by 31st August, 2015, the ‘due date’ for filin...

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No wealth tax on land which remains vacant as per construction Plan

CIT Vs M/s MIL Industries Ltd. (Madras High Court)

Madras High Court held in CIT Vs M/s MIL Industries Ltd that the vacant land left on constructed property as per the construction plan of that property would not be treated as a vacant urban land because the vacant land left was the requirement of the construction plan...

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Let-out Commercial Property is not to be considered as Asset for Wealth Tax purposes

D.C.I.T. Vs M/s. Kothari Metals Ltd., (Kolkata ITAT)

The Assessing Officer while computing the total wealth of the assessee added the value of the let-out properties i.e. godown and offices in the total wealth of the assessee for the purpose of calculating the wealth-tax....

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Extension of due date of filing Return of wealth for A.Y, 2015-16

328/08/2015-WT (27/07/2015)

Central Board of Direct Taxes vide order under section 119 of the Income-tax Act F.No.225/154/ 2015/ETA-II dated 10.6.2015 has extended the 'due date' for filing Return of Income for assessment year 2015-16 in respect of assessees falling under clause (c) of explanation 2 to sub-section (1) of section 139 of the Income-tax Act from 31.7.2...

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Land on which construction has started is not Asset for Wealth Tax Purposes

Wealth Tax Officer Vs M/s. United Exhibitor Syndicate Pvt. Ltd. (ITAT Kolkata)

It cannot be said that the land owned by the assessee was a vacant land. The character of the land has changed and it was no more plot of the land. Urban land, no doubt, is subject to the tax under the Wealth Tax Act, but, in our opinion, it will cover only the vacant land....

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Commercial / Industrial properties cannot be assessed to Wealth tax

PASL Windtech Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)

For the purpose of levy, assets are classified as two categories one as productive and other as non productive. Under the provisions of amended Act, tax is levied only on non productive assets such as residential house, urban land, jewellery, bullion, motor car etc. In the case in hand, industrial plots are being utilized as productive as...

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Reg. Refund of Wealth Tax Paid on Urban Agricultural Land Used for Agriculture

Circular No. 11/2015-Income Tax (11/06/2015)

CIRCULAR NO. 11/2015 Prior to amendment by Finance Act 2013, sub clause (b) of Explanation 1 to clause (ea) of section 2 of the Wealth-tax Act 1957 (Act) provided that an urban land shall be chargeable to wealth-tax. This inter alia included land situated in any area which is comprised within the jurisdiction of a municipality or a canton...

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Abolition of levy of wealth-tax under Wealth-tax Act, 1957

History of Wealth Tax Act Wealth-tax Act was introduced w.e.f. 01.04.1957 on the recommendation of Prof. Nicholas Kaldor forachieving twin major objectives of reducing inequalities and helping the enforcement of Income-tax Act through cross checks. Accordingly, all the assets of the assessees were taken into account for computation of net...

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Posted Under: Income Tax |

Non-applicability of Wealth-tax for November, 2015 CA Final Examination

The Finance Bill, 2015, introduced in the Parliament on 28th February, 2015, has proposed to abolish the levy of wealth-tax under the Wealth-tax Act, 1957 with effect from assessment year 2016-17. The Finance Bill, 2015 would be enacted in May 2015, after it is passed by both the Houses of the Parliament and receives the assent of the Pre...

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Posted Under: Income Tax |

Gold and Silver Rates as on 31.03.2015

Gold rates 24 CARAT Rs.26,580.00 (99.50) per 10 gram 22 CARAT Rs.25,850.00 per 10 gram 20 CARAT Rs.24,150.00 per 10 gram 18 CARAT Rs.22,100.00 per 10 gram Silver Rates : Rs.37,500.00 Per Kg Related Posts- Gold & Silver rates from 01.04.1981 to 31.03.2014 Year end Rates of Gold & Silver from 1982 to 2014 with […]...

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Posted Under: Income Tax |

Wealth Tax : Chargeability of Interest on self-assessment tax paid

Circular No. 5/2015-Income Tax (09/04/2015)

CIRCULAR NO. 5/2015, Dated: April 9, 2015 Chargeability of Interest under section 17B of the Wealth-tax Act, 1957 on self-assessment tax paid before the due date of filing of return of net wealth...

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An analysis on Abolition of wealth tax in Finance Bill, 2015

Though the government has been able to successfully enact Wealth Tax act in India for nearly 57 years till now, it has now considered to scrap the Act in it's entirety w.e.f 1st April, 2016. This means that the return of wealth need not be filed for the Financial Year 2015-16....

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Posted Under: Income Tax |

Union Budget 2015 – Key takeaways for individuals

The expectation from the Government was to reduce the tax burden for overall middle class, however there was no alteration in the income tax slabs, only some additional deductions are been introduced in the budget. The Finance Minister has said that individuals can now increase its non-taxable income close to Rs 450,000 a year if they pla...

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Posted Under: Income Tax |

Wealth Tax Returns not to be filed from Assessment Year 2016-17

Abolition of levy of wealth-tax under Wealth-tax Act, 1957 Wealth-tax Act, 1957 (‘the WT Act’) was introduced w.e.f. 01.04.1957 on the recommendation of Prof. Nicholas Kaldor for achieving twin major objectives of reducing inequalities and helping the enforcement of Income-tax Act through cross checks. Accordingly, all the assets of t...

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Posted Under: Income Tax | ,

Whether it is a tax planning or tax avoidance or tax evasion ??????

Shah Rukh Khan (King Khan), a famous actor of Bollywood, had given a loan of Rs. 2,28,88,530.00 to his wife Gauri Khan in A.Y. 2006-07. Gauri Khan has purchased, out of the said loan, a residential property and jewellery. The A.O. has accepted the Wealth Tax Return filed by Shah Rukh Khan passing an order […]...

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Posted Under: Income Tax |

No Wealth tax on Assets Purchased by Wife out of loan from Husband- Shah Rukh khan gets relief

Mr. Shah Rukh khan Vs Asst. Commissioner of Wealth Tax (ITAT Mumbai)

The facts, in brief, are that the assessee declared net wealth of Rs.2,75,28,460/- in his wealth tax return. The ld. Assessing Officer accepted the wealth declared by the assessee by passing an order u/s 16(3) of the Wealth Tax Act, 1957....

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How to Fill Return Of Net Wealth (Form BB)

Instructions For Filling Up Return Of Net Wealth in new Form BB assessment years 2014-15 and subsequent years- Net Wealth (Form BB)is to be filled up by all wealth-tax assessees [individual, Hindu Undivided Family (HUF) or company]. This form is applicable for assessment years 2014-15 and subsequent years....

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Introduction Of Inheritance Tax- Move Towards Reduction Of Fiscal Deficit

An inheritance tax or Estate tax or Death duty is a tax paid by a person who inherits the assets of the deceased. It is a tax on the assets which a person receives after the demise of the transferor. In international tax law, there is disparateness between an estate tax and an inheritance tax: an estate tax is levied on the assets of the ...

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Posted Under: Income Tax |

Mandatory E-Filing of Wealth Tax Return and FAQ

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...

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Changes made in Wealth Tax Return Form for Assessment Year 2014-15

CBDT wide its notification No. 32/2014 dated 23.06.2014 has amended the Wealth–Tax Rules, 1957. As per notification electronic filing of wealth tax return under the digital signatures has been made mandatory except in cases of individual or HUF assessees...

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CBDT releases Form BB (Return of Net Wealth) for AY 2014-15

CA Sandeep Kanoi A 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 for assessment year 2014‐15 and onwards. [Refer Notification No:32/2014 dated 23/06/2014]. Some of the Important Feature related to Filing of For...

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Posted Under: Income Tax |

Applicability of Wealth tax on making charges of jewellery

Under the scheme of Wealth Tax in India, Wealth tax is levied on the net wealth of the every individual, Hindu undivided family and company as on the valuation date. Net Wealth means the amount by which the aggregate value computed in accordance with the provisions of Wealth Tax Act of all the assets...

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CBDT notifies new Wealth Tax Return Form & Rules for Online Filing

Notification No. 32/2014-Income Tax (23/06/2014)

Notification No. 32/2014-Income Tax Form of return of net wealth. — (1) The return of net wealth referred to in section 14 shall— (a) in respect of assessment year 2013‐14 and earlier assessment years in the case of individuals, Hindu undivided families and companies, be in Form BA and shall be verified in the manner specified there...

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I-T returns should also include wealth tax returns – TARC

Filing of tax returns o    I-T returns should also include wealth tax return so that the taxpayer need not separately file wealth tax returns. These returns should also be processed together in the CPC at Bengaluru. o    The disclosures in the return should include a brief mention of the issues on which there has been […]...

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Posted Under: Income Tax |

ICAI recommends increase in Wealth Tax exemption limit to One Crore

CA Sandeep Kanoi It its pre-budget memorandum ICAI has submitted following recommendations related to wealth tax :- Taxable Wealth – to exempt motor cars – 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 lawm...

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Posted Under: Income Tax |

Electronic filing of annexure-less return of net wealth

Sections 139C and 139D of the Income-tax Act contain provisions for facilitating filing of annexure-less return of income in electronic form by certain class of income-tax assesses. In order to facilitate electronic filing of annexure-less return of net wealth, new sections 14A and 14B have been inserted vide Finance Act,2013 in the Wealt...

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Posted Under: Income Tax |

Wealth tax not leviable on urban land used for agricultural purposes and classified as agricultural land

Wealth tax is not leviable on urban land which is, (i) classified as agricultural land in the records of the Government; and (ii) used for agricultural purposes....

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Posted Under: Income Tax |

Wealth tax implications on real estate

Even though land or building as above may be a taxable asset, but an exemption from wealth tax has been provided to an individual or an HUF in respect of one house (or part of house) or a plot of land upto 500 square metres in area. The house may be self-occupied or let out or used for residential or commercial purposes. A company is not ...

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Posted Under: Income Tax |

Aircraft Owned & used by Assessee for travel of its Directors exempt from wealth Tax

Commissioner of Wealth Tax Vs Jay Pee Entures Ltd (Delhi High Court)

In the present case the ITAT has recorded that it is undisputed that the two aircrafts were used by the Assessee for its business. Since this is the undisputed factual position, the same would be exempt from wealth tax....

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Income Tax Department Ready With More Clout!

The Income Tax Department is ready to take a jibe on your cash transactions. These dealings were in the IT radar in the past as well but after the drive to make the system more transparent a cash limit has been set. The IT department will now check the details of any cash transaction of more […]...

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Real Estate transactions- Recent amendments in Income tax & Wealth tax

Real estate transactions in recent past have attracted the attention of Central & State Governments. New provisions under Income tax, Wealth tax, Service tax, Value added tax & revised guidelines for registration are examples of attempts on the part of the Government to raise more & more revenue from real estate transactions....

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Posted Under: Income Tax |

Agricultural land not liable to wealth-tax

Land classified as agricultural land in the records of the Government and used for agricultural purposes not an asset chargeable to wealth-tax Section 2(ea) of the Wealth-tax Act, 1957 is proposed to be amended to clarify the real intent of the law, i.e., the agricultural land in the records of the Government and used for […]...

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Posted Under: Income Tax |

Rates of Gold and Silver as on 31.03.2013

We needs rates of Gold and Silver for Wealth Tax Valuation Purposes as on 31.03.2013 to correctly value gold and silver as on 31.03.2013 but since  no trading was taken place in Gold and Silver on 31.03.2013 so we will take the rate of last trading  day (30.03.2013) of Financial Year 2012-2013 as the rate […]...

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Posted Under: Income Tax |

Notional depreciation not allowable while computing value of assets for wealth tax

Venus Records & Tapes (P.) Ltd. Vs Assistant Commissioner of Wealth-Tax, Mumbai (ITAT Mumbai)

A plausible manner in which WDV of an asset, thus, may be reckoned for the purpose of r. 14 is to reduce the depreciation at the rate as prescribed for the relevant block of the assets, i.e., under which the said asset falls, for the years for which depreciation has actually been allowed since its acquisition (though on the relevant block...

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Budget 2013-14 – Income Tax & Wealth Tax Amendments

FINANCE BILL, 2013 – PROVISIONS RELATING TO DIRECT TAXES A.            RATES OF INCOME-TAX I.             Rates of income-tax in respect of income liable to tax for the assessment year 2013-14. In respect of income of all categories of assessees liable to tax for the assessment year 2013-14, the rates of incom...

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Govt to enable online filing of Wealth Tax Returns

Section 14 of the Wealth-tax Act provides for furnishing of return of net wealth as on the valuation date in the prescribed form and verified in the prescribed manner setting forth particulars of the net wealth and such other particulars as may be prescribed. Currently, certain documents, reports are required to be furnished along with th...

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Some Helpful Tips For Filing Wealth Tax Returns

The W.T. return for Individuals, Hindu Undivided Families and Companies is to be filed in Form BA. Value of an asset for an assessment year is to be declared as on the relevant Valuation Date i.e. 31st March of each year. Thus, for the assessment year 2012-13, the valuation date will be 31.3.2012, while for the A.Y. 2013-14, the valuation...

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Tuition fees in advance is an asset under Wealth Tax Act

Commissioner of Wealth Tax, Chennai Vs N. Thanu (Madras High Court)

A reading of the decision of the Supreme Court in the case of CWT v. Vysyaraju Badreenarayana Morthy Raju [1985] 152 ITR 454 shows that the computation of the net wealth of an assessee calls for a determination of his assets and debts as on the valuation date. Whether the system of accounting, whether mercantile or cash or hybrid, is not ...

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Net wealth not to include forfeited assets despite pendency of appeal on valuation date

Wealth Tax Officer Vs Lallubhai Jogibhai Patel (Gujarat High Court)

The Appellate Tribunal was right in law and facts in holding that the value of silver bars which stood confiscated under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 could not be added to the wealth of the assessee despite the fact that the confiscation order was subsequently set aside in appeal and t...

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Wealth Tax Payable on Urban land even if assessee carrying on agricultural activities on the same

Mohammed Ibrahim Vs Assistant Commissioner of Income-tax (ITAT Chennai)

In the present case, the land owned by the assessee comes within the purview of urban area and the assessee is carrying on agricultural activities on the same. There is nothing on record to show that construction of building on assessee's land is prohibited. ...

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Wealth Tax not payable on house not fit for residence or incomplete house

Sunil B. Handa Vs Deputy Commissioner of Wealth-tax (ITAT Ahmedabad)

In the instant case, the fact of purchase of land, commencing of the construction of residential house on the said land and the sale of land is not in dispute. The only dispute is whether the land was an 'asset' within the meaning of section 2(ea) and, therefore, liable to wealth-tax or the land along with the superstructure can be consid...

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If there is no relevant notification, land within 8 kms of municipality limits deemed to be an ‘agricultural land’

Commissioner of Income tax Vs Madhukumar N. (HUF) (Karnataka High Court)

It is not in dispute that the Central Government has not issued any notification in terms of section 2(14)(iii)(b). An agricultural land is not a capital asset; it becomes a capital asset if it is the land located under section 2(14)(iii)(a) & (b). Section 2(14)(iii)(a) covers a situation when the subject agricultural land is located with...

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Wealth Tax – To claim exemption of SOP, stay in house not mandatory

Ramesh D Hariani Vs Wealth Tax Officer (ITAT Mumbai)

In the instant case, the property in question is residential house, which has not been let out or used for the purpose other than residential. Therefore, even though the assessee did not stay in the house so long, this house is exclusively for residential purpose. Therefore, the conditions as enumerated in the third proviso to rule 3 are ...

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WT – Property subject to ULCA restrictions cannot be valued at market value

Aims Oxygen Pvt. Ltd.Vs Commissioner of Wealth-Tax (Gujarat High Court at Ahmedabad)

Land in question was declared surplus land under the Urban Land [Ceiling & Regulation] Act, 1976 which was having depressing effect on the value of the asset, the valuation had to be made on the basis of assumption that the purchaser would be able to enjoy the property as the holder, but with restrictions and prohibitions contained in the...

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WT- Mere letting of office premises cannot put them in the category of commercial establishment or complex

Naturell (India) (P.) Ltd. Vs Assistant Commissioner of Wealth Tax (ITAT Mumbai)

When the assessee is not in the business of leasing out of the property and the intention of letting out the premises in question was not to exploit the business assets in relation to the business of the assessee then the said property would not fall under the exception as provided u/s 2(ea)(i)(5) of the W T Act being commercial establish...

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Wealth Tax on agricultural lands in urban area

Finance Act, 1992 made suitable amendments to the Wealth Tax Act and sec. 2(ea)(v)(b) defines “urban land”. But it does not clearly explain the status of agricultural lands situated in urban areas. In spite of that, the income tax authorities were giving exemptions to such lands till recently. This was evidenced by a document dow...

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Wealth tax Payable on property deemed to be belonging to assessee

Commissioner of Wealth-tax Vs H.P. Small Industries & Export Corp. (Himachal Pradesh High Court)

The words 'belonging to' have to be read along with the Explanation of section 4 and under this Explanation the expression 'transfer' includes any agreement or arrangement. The assessee, in the instant case, was allotted the land by the State Government. It constructed sheds thereupon and rented out the same and derived income therefrom. ...

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Despite passing of assessment order, Valuation proceedings to be completed once it is referred to DVO

ACC Ltd. Vs District Valuation Officer (Delhi High Court)

We do not think we would be justified in preventing the Assessing Officer from collecting evidence which may be used by him for the purpose of bringing what in his opinion is the proper amount of capital gains on the sale of Okhla land. As to how he proposes to use the evidence against the assessee is a matter of speculation which we refr...

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Valuation accepted for Wealth-tax Act, should also be adopted under Income-tax Act

Deceased Shantadevi Gaekwad Vs Dy Commissioner of Income Tax, Circle (Gujarat High Court at Ahmedabad)

Revenue having accepted the declaration of the valuation of the selfsame jewellery given by the assessee as on 31st March, 1989 as correct valuation for the purpose of Wealth Tax Act, there is no reason why the same valuation should not be treated to be a reliable base for the purpose of computing the capital gain under the Act by the pro...

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Unused urban land held by assessee for industrial purposes not assessable to Wealth Tax for a period of two years from the date of acquisition

Mars Hotels & Resorts (P.) Ltd. Vs Deputy Commissioner of Wealth Tax (ITAT Mumbai)

Notification has permitted the development of the land only for hotel; therefore, after the said notification, the land in question cannot be developed other than hotel and there is no dispute on this point that the land was finally developed by constructing the hotel by the assessee. Even, the MCGB vide its letter dated 10.6.1994 has ack...

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RBI exempt from Wealth Tax

In order to provide that the RBI is not liable to pay wealth-tax, it is proposed to amend section 45 of the Act to provide that wealth-tax shall not be levied on the net wealth of RBI. This amendment will take effect retrospectively from 1st April, 1957 and will, accordingly, apply in relation to the assessment year 1957-58 and subsequent...

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Wealth Tax – Salary Limit for Exemption of residential house allotted to employee hiked

Considering general increase in salary and inflation since revision of this limit, it is proposed to increase the existing threshold of gross salary from five lakh rupees to ten lakh rupees for the purpose of levying wealth-tax on residential house allotted by a company to an employee or an officer or a whole time director. ...

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Wealth Tax on Incomplete or under Construction Building?

Shri Sanjay Krishna Hegde, Kolkata Vs. Assistant Commissioner of Wealth Tax (ITAT Kolkata)

Incomplete or under Construction Building not liable to wealth tax- Incomplete building of the assessee neither falls within the definition of a building, as contemplated under section 2(ea) of the Act, nor within the purview of urban land as excluded by Explanation 1(b) of the Wealth Tax Act. ...

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Budget 2012 – Foreign bank deposits, paintings, watches may attract wealth tax

Deposits in foreign banks, paintings, sculptures and expensive watches may come under the wealth tax net as part of the government's drive to unearth black money.The proposal to expand the ambit of the Wealth Tax forms part of the Direct Taxes Code (DTC) Bill which is being scrutinised by a Parliamentary Standing Committee. Some of the pr...

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Correction in OLTAS / Income Tax / TDS / Direct Tax Challan, Type of Correction and Period for correction

Correction in OLTAS challan i.e. in Challan No. ITNS 280 related to payment of Income tax and Corporation tax, ITNS 281 for depositing Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from corporates or non-corporates , ITNS 282 for payment of Hotel Receipts Tax, Estate Duty, Wealth Tax, Gift-tax, Expenditure Tax and Other direc...

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Vacancy in Posts of Member, Settlement Commission (Income Tax / Wealth Tax)

The Ministry of Revenue has intimated that some posts of Members of the Settlement Commission are vacant and due to be filled shortly. As per the Settlement Commission (Income Tax/ Wealth Tax) (Recruitment and Conditions of Service of Chairman, Vice-Chairman and Members) Amendment Rules, 2007 applicable to the said post, only serving Chie...

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Immovable properties used primarily for business purpose cannot be taxed under the Wealth Tax Act

Commissioner of Income Tax Vs Gujarat State Petroleum Corporation Ltd.(Gujarat High Court)

CIT Vs Gujarat State Petroleum Corporation Ltd. (Ahmedabad High Court)- In the instant case, the assessee-company has let out only a very small portion (i.e. less than 10%) of its office premises to the Directorate of Petroleum. Department of Energy and Petrochemicals and that too under directions from the Government. ...

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Reassessment after four years on change of opinion not valid

CIT, Chennai Vs M/s Simpson & Co. (Madras High Court)

CIT, Chennai Vs M/s Simpson & Co. (Madras High Court)- There must be a nexus between the material at the hands of the Officer and formation of belief that there was escapement of wealth from assessment on account of the failure of the assessee to disclose fully and truly, all material facts. In the absence of any nexus or any one of the ...

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A notice issued on a non-existent person is void. The fact that the assessee has filed a return in response to the notice makes no difference

I. K. Agencies Pvt. Ltd. Vs Commissioner of Wealth Tax (Calcutta High Court)

I. K. Agencies Pvt Ltd vs. WTO (Calcutta High Court) - The authorities below totally overlooked the fact that initiation of the proceedings for reassessment was vitiated for not giving notice under Section 17 of the Wealth Tax Act to the Appellant and the notice issued upon M/s. Abhudey Properties Pvt. Ltd. which was not in existence at t...

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After acquisition and vesting of all rights of a land in State, mere speculative right to receive compensation/enhanced compensation is not and cannot possibly be treated as an asset under section 2(ea) of the Wealth-tax Act

CWT Vs. Parminder Singh (Punjab & Haryana High Court)

As soon as the land of the assessee is requisitioned and stood vested in the State, he does not remain its owner and the mere inchoate right to receive the enhanced compensation cannot possibly be treated as assets and included in his wealth subsequently....

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Govt plans to widen the scope of wealth tax in Budget 2011-12

The government plans to widen the scope of wealth tax in Budget 2011-12 to include several assets that escape the tax net as they are acquired through cash transactions.Armed with a survey on ostentatious display of wealth, the government is collecti...

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DTC proposes to levy wealth tax on productive assets held in foreign arms

The scope of wealth tax, which is currently levied on unproductive assets like jewellery, yacht and aircraft will be extended to productive assets like equity or preference shares held by an Indian company in its overseas subsidiary and interest in f...

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Urban land utilised for construction of a building with approval of prescribed authority is not subject to Wealth-tax under definition of "asset"

Apollo Tyres Ltd. Vs. ACIT (Kerela High Court)

Once the non-productive asset like urban land is converted into a productive asset like a building which qualifies for exemption, then the assessee can start availing exemption even during the period of conversion of such non-productive asset to productive asset....

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Warehouse is taxable Asset under section 2(ea)(i) of Wealth-tax Act

Nutan Warehousing Co. Pvt. Ltd. Vs DCWT

We have also carefully examined the decision of Salvinder Singh 109 ITD 241 decided by respected co-ordinate bench wherein, the provisions of section 2(ea) of Wealth-tax Act were discussed and have noted that in that case the assessee had more than one commercial establishments or complexes at different places, so the assessee has owned m...

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Do not ignore the importance of filing annual wealth tax returns

The season to file income tax returns is on and most taxpayers will try to quickly wrap up the process. But most people ignore the importance of filing annual wealth tax returns. Govind Pathak, a certified financial planner, explains, “If you start paying wealth tax all of a sudden, officials can seek records of how you acquired this we...

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Value of house under construction including investment on construction is not liable to wealth-tax

CIT Vs Smt. Neena Jain (Punjab & Haryana High Court)

The perusal of the scheme of the Act posits that it is not always that any building or land appurtenant thereto are straightway liable to wealth tax. There are many exceptions contained in section 2(ea)(i)of the Act in this respect, such as ,house meant exclusively for residential or commercial purposes, which forms part of the stock in-...

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Calcutta HC asks Suchitra Sen to deposit rupees 5 lakh for opening up hearing in wealth tax penalty case

Calcutta High Court asked film actress Suchitra Sen to deposit Rs five lakh before opening up a hearing of her appeal challenging the income tax (I-T) department directive to pay hefty taxes for her flat in the city’s southern part. This is for the second time Ms Sen moved an appeal against the I-T department for imposing a wealth tax ...

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Wealth-tax not Chargeable on Urban Land excluded from the ambit and expression of Urban Land

Amrit Lal Jindal & Sons (HUF) Vs ITO (Punjab & Haryana High Court)

The land which falls within the exception of `urban land' would have to be excluded from the ambit and scope of expression `urban land' and, such land would not be covered by the expression `assets' as defined in section 2(ea) of the Wealth-tax Act, 1957; consequently, such land would not be treated as net wealth of an assessee for the pu...

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Two separate agreements to purchase a flat having two separate numbers do not mean that they are two residential units

Suresh C. Sadarangani Vs. ACIT (ITAT Mumbai)

word `property' has been used by the legislature in a wider sense so as to include more than one house. However, the right to compute the ALV at nil in respect of self occupied property is restricted to one house even thought he property owned by the assessee may consist of more than one house....

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New Direct tax code and welath tax provisions, exemption limit may increase to 50 crore

The Code proposes to tax net wealth in the following manner:- Wealth-tax will be payable by an individual, HUF and private discretionary trusts. Wealth tax will be levied on net wealth on the valuation date i.e. the last day of the financial year. Assets chargeable to wealth-tax will mean all assets, including financial assets and [&helli...

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Wealth tax exemption limit raised

Enhancement of the limit for payment of wealth tax under the existing provisions of section 3 of the Wealth-tax Act, wealth tax is charged every year in respect of net wealth, on the valuation date, of every individual, Hindu undivided family and company at the rate of one per cent. of the amount by which the net wealth exceeds Rs.15.00 l...

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Posted Under: Income Tax |

Wealth Tax Act Forms in Excel Format, Word Format & PDF format

The forms includes Return Of Net Wealth in Form A, Form Of Return Of Net Wealth For Individual/Hindu Undivided Families/Companies in Form BA, Form Of Return Of Net Wealth Under Sub-Section (1) Or Sub-Section (2) Of Section 14 Of The Wealth-Tax Act, 1957 [For companies * only] in Form A, Statement of valuation of jewellery in Form O-8A and...

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Posted Under: Income Tax |

Rationalisation of revised Settlement Scheme

The Finance Act, 2007 carried out a comprehensive amendment to the scheme of settlement of cases. This scheme provides for abatement of proceedings before the Settlement Commission under various circumstances. In order to deal with the various issues that may arise in the event of abatement of proceedings before the Settlement Commission,...

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Posted Under: Income Tax |

Land used for internal roads of the factory and play ground for workers of the factory is taxable as wealth of the company,

Motwane Manufacturing Co. Pvt. Ltd.,Vs The Commissioner of Wealth-tax (Bombay High Court)

Motwane Manufacturing Co. Pvt. Ltd., Vs. The Commissioner of Wealth-tax (Mumbai HC) - The Tribunal was right in law in holding that land used for internal roads of the factory and play ground for workers of the factory is taxable as wealth of the company, when the factory building has not been charged for wealth-tax ....

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Wealth-Tax (Second Amendment) Rules, 2009 – Amendment In Rule 3A

Notification No. 16/2009 - Income Tax (13/02/2009)

Notification No. 16/2009 - Income Tax In exercise of the powers conferred by section 46 of the Wealth-tax Act, 1957 (27 of 1957), the Central Board of Direct Taxes hereby makes the following rules further to amend the Wealth-tax Rules, 1957, namely...

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Amendment in Wealth-tax rule 3A related to Jurisdiction of Valuation Officers

Notification No. 16/2009 - Income Tax (13/02/2009)

Notification No. 16/2009 - Income Tax Where the valuation of any asset, being building or land or any right in any building or land, referred to the District Valuation Officer, the Valuation Officer or the Assistant Valuation Officer, as the case may be, is pending with him on the 13th February, 2009, being the date of commencement of th...

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