31 March 2012
Mr PC you say that business assets are not subject to wealth tax.
If that is the case, then why are companies liable to pay wealth tax?
Business assets which fall in the definition of assets as per Section 2(ea) are liable for welath tax.
Motor car is one such asset on which wealth tax has to be paid. As per Rule 20 of Schedule III to the Wealth Tax Act, fair market value of the motor car has to be taken for the purpose of wealth tax.
The value as per the insurance policy can be taken as the fair market value.
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