Life interest - wealth tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2013 Seeking the explanation on "Life Interest"?
Kindly explain me the meaning of Life Interest and explain that how to calculate it as per Wealth Tax Act, 1957.

@VaibhavJ

@VaibhavJ (Expert)
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19 October 2013 Hi

Pl refer: http://www.taxpointindia.com/wealthtax_valuationlifeinterest10.html

Do write back if you have query.

Thanks//VaibahvJ

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2013 Thanks for your valuable consideration @VaibhavJ. It is really helpful for calculation of life interest of the assessee. But my first doubt is still not clear. Which is "What is the meaning of Life Interest"?

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@VaibhavJ

@VaibhavJ (Expert)
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19 October 2013 Life interest means same as you value good will it values Individual's Goodwill.

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2013 Thanks. Further wrt below eg how it should be calculated:
Mr. X (calculating wealth tax first time) having following assets having the value of:
House- 10.5L
Urban Land- 8L
Car- 3.5L
Jewellery- 1.2L
Total Business Assets- 12L
Interest in the Firm- 5L