computation of net wealth

Tax queries 2384 views 6 replies

Simranjeet Singh

Proprietor at S Simranjeet & Associates

4396 Points Joined October 2009

hello, everyone solve this out for me.

compute the net wealth of rajan, a resident individual , as on 31 march,2010 from following

1. he has a house property at delhi valued at rs. 20,00,000 used for business purposes.

2 .vehicles for personal use- motor car : rs. 8,40,000 , motor van - 4,50,000 and jeep - rs. 3,54,000

3. cash in hand - 3,50,000

4. jewellery - 15,60,000 and

he had transferred an urban house plot in feb,2010 in favour of his niece, which was not revocable during her life time. his niece died on 14 march,2010 and rajan could get the title of plot retransferred to his name on 15 march,2010. market value of house plot as on 31 march,2010 is rs. 14,10,000.

Replies (6)

Amir

Learner

4016 Points Joined December 2009

Dear Simranjeet,

1) House property - Not an asset being used for Business

2) Vehicles - ALL 3 Vehicles are taxable

3) cash in hand = 3,00,000 is taxable

4) jewellery = 15,60,000 is taxable

5) Value of urban land is taxable but again exemption in respect of land can be claimed u/s 5(vi)provided upto 500 sq metres

Simranjeet Singh

Proprietor at S Simranjeet & Associates

4396 Points Joined October 2009

thanks again brother........

Simranjeet Singh

Proprietor at S Simranjeet & Associates

4396 Points Joined October 2009

in this question deduction of urban land have to be given or not. whats the final answer is it 4914000

and we can show in the note that deduction for land can be claimed provided upto 500 sq. meters.is it right and we have to show like that gross wealth 4914000

less: exemption nil

net wealth 4914000

then we have to give note for deduction .pls provide me the exact format i have to write this answer for cc paper.