I need some information about section 18(1)(iii) of wealth tax act. As my client who is a woman having a plot . When she purchsed that plot in 2004 for rs. 600000/-and it was not fall in circle rates.As she has not any knowledge of wealth tax. she has not filed any wealth tax return. after receiving notice for A.Y. 2005-06, 2006-07, 2007-08 from income tax office, she has filed wealth tax return for A.Y. 2005-06, 2006-07, 2007-08 & 2008-09.and paid wealth tax for each year.she has been scutinzed for above three years but no tax has been levied on her. after completion of assessment of above three years. she has received notice for penalty u/s 18(1)(iii). whether she is liable to pay the penalty or not.If yes, plz send some suggestion of preventing from penalty as soon as possible. plz also provide case law if any. thanking you.
31 December 2009
As per the given facts, there should be no wealth tax liability there as the plot price is just Rs. 600,000/-. WT is payable only if wealth is more then Rs.15 Lacs. So i am unable to understand the exact query, and why she paid tax for last 3 years. And for what the penalty has been levied? Please give some more details.
CAclubindia
