Wealth tax

This query is : Resolved

kunal (Querist)
Follow

29 December 2012 sir, in a private limited co.
while calculating net wealth of a company(for the purpose of wealth tax liab.)
is depreciation allowed for deduction from the value of an asset on the valuation date???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

30 December 2012 An assessee is required to pay tax on its Net Wealth which is the difference of Assets and (liabilities + Debts Owed).
.
In Wealth Tax Act assets have been defined vide Section 2(ea) which are to be valued at
market value or at such value which has been arrived by applying the prescribed rules.
So, it can be presumed that the value so arrive takes due care of depreciation or appreciation in the value of the assets and thereby leaves no scope of further adjustment.
.

Message likes : 2 times