Wealth tax query

CS,CA F,Numrologi TusharSampat

isha (Querist)
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17 December 2013 is "FLAT BOOKING" to be considered as an asset u/s 2(ea) of wealth tax act 1957?

CS,CA F,Numrologi TusharSampat (Expert)
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17 December 2013 The ans is no as house use for residential purpose is not taxable.

Ankit (Expert)
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17 December 2013 No Isha...

the flat will become an asset only after the construction is complete and possession is received.

Also, one house is exempt for wealth tax

isha (Querist)
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17 December 2013 yeah i am aware that one residential flat is exempt but here we hav flat booking now how am i to know whether it is already constructed or not?

isha (Querist)
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17 December 2013 and i have more than one flat here

Ankit (Expert)
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17 December 2013 but have you got the possession????
is this a practical question or an exam related query??

isha (Querist)
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17 December 2013 practical..articleship currently!

Ankit (Expert)
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17 December 2013 then you need to check the same with the client....CIT v. Smt. Neena Jain, WTA Nos. 17 to 20, dated 19-2-2010, the Punjab & Haryana High Court has upheld the view that a house under construction is not liable to WT and is not an urban land.

Ask the client naa...whether he has got the possession of the house or no?

isha (Querist)
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17 December 2013 no my sir told to include it the net wealth..:/

isha (Querist)
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17 December 2013 yes i know anything under construction is not to be included

Ankit (Expert)
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17 December 2013 then now it is for you to decide....

though legally speaking it should not come...but since your boss is saying, there must be some reason to it...

show him the case law....andask him naa for the reason...

isha (Querist)
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17 December 2013 he said dont take pehle now he is telling take...and im a new article just started 2 weeks back and im given wealth tax..:/

Ankit (Expert)
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17 December 2013 Correct Isha....now that you know the law...show him the case laws and ask him for the reason naa...

that ways you would also get to learn...

and anyways you will also earn brownie points naa....he ll be impressed by the research...

incase you have any queries..feel free to ask

isha (Querist)
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17 December 2013 okay i hav one more...:P
how is motor car to be valued in net wealth??

isha (Querist)
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17 December 2013 the logic he gave me was hamara paisa to ja chuka hai na..:/
and pehle when he said that wouldnt be included he said hamare pass asset abhi tak aya hai kya??
mein kya karu fir

CA SURENDRA KUMAR RAKHECHA

Ankit (Expert)
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17 December 2013 Motor car is to be valued at the fair value of the asset

And as far as the building goes…include it then..no choice you have naa…

CA SURENDRA KUMAR RAKHECHA (Expert)
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17 December 2013 Money advanced for whatever purpose is LOANS AND ADVANCES.
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Loans and Advances is not taxable under Wealth Tax Act.
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PRACTICAL HINT (as you are too junior):
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Initially just prepare the Computation as per your boss's directions.
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But of course; being a future auditor; you must EXAMINE the law and see what happens in future with the ASSESSEE i.e. how it is assessed by the Department later on.

However; when your boss finalizes it, tell him about your doubt and show him the section 2(ea) of the Wealth Tax Act,1957.
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Assets falling outside this section( sub sections "a to e)" are not taxable.
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Only then he will appreciate you and you will find yourself on the TOP. :)
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KEEP DISCUSSING TO LEARN MORE AND MORE TO MAKE YOUR CAREER BRIGHT.
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BEST WISHES!

isha (Querist)
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17 December 2013 thank you sir :)
yes im gonna keep this site open and ask u people doubts :P