Wealth tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2014 is interest free loan given by assesse to another person does it taken as loans and advances while calculation of wealth tax return

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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28 December 2014 Debts under section 2(m) of wealth tax means debts incurred for the purpose of acquiring any asset liable for wealth tax.

It doesn't whether or not loan have interest bearing character or not, but it should be used for acquiring asset liable for wealth tax under wealth tax act

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2014 only non performing assests will come under wealth tax my question is whether interest free loan given to some one by us can be called as performing or non performing?

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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28 December 2014 There is no concept of preforming or non performing asset under wealth tax.

only six assets are covered under 2(ea) of wealth Tax.
1.Building
2. Motor Car
3. Jewellery
4. Motor car
5. Urban land and
6. Cash

if debts are directly linked with these assets then only deduction can possible