Please Help: WEALTH TAX
Posted Date : 03-Aug-2012 , 05:42:39 pm | Posted By: PRAKASH KUMAR SINGH
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Students | Answers :
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what are the items on which wealth tax are applicables? |
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Answers:
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 Answer by: Vikash Kumar Jha |
| Building, moter cars, jewellery, yachts, aircrafts, urban land, cash in hand
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| Answer by: Rambabu Senkarasetti |
| • All assets in India other than loan and debts interest those are exempt from income-tax under section 10 of the Income-tax Act.
• All debts in India are deductible in computing the net wealth.
• All assets and debts outside India are out of the scope of the Wealth Tax Act.
• In case the tax payer is not a citizen of India, whether resident or non-resident, same rules as applicable to non-resident shall be applicable.
There are broadly two types of assets which attract wealth tax- Owned assets and Deemed assets.
Owned assets include:
• Land or building included in the following categories:
• Commercial buildings
• Residential buildings
• Guest houses
• Farm houses situated within 25 kilometers from the local limits of any Municipality, Municipal Corporation or a Cantonment Board.
• Motor cars
• Jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal.
• Yachts, boats and aircrafts.
• Urban land
• Cash in hand
• In excess of Rs. 50,000/-, in case of an individual and HUF.
• Not recorded in books of accounts, in case of companies.
Deemed assets include:
• Assets transferred by one spouse to another.
• Assets held by minor children (including physically and/or mentally handicapped).
• Assets transferred to a person or an association of persons.
• Assets transferred under revocable transfer.
• Assets transferred to son’s wife.
• Assets transferred to a person or Association of Persons for the benefit of son's wife.
• Value of the interest of the tax payer in the assets of the firm or an association, where he is a partner in the firm or a member of the subject association.
• Assets converted by an individual of his self-acquired property into joint family property.
• Where a gift of money from one person to another is made by means of entries in books of account maintained by the person making the gift.
• Assets falling under ‘Impartible estate’.
• Assets allotted or leased to the tax payer on account of being a member of a housing society.
• Assets held by a person in part performance of a contract.
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