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wealth tax

Arunashree ( Finance Manager) (117 Points)

27 February 2010

Just clarify one more point. For example for the Asst.year 2008-09 net wealth was
Rs 55.00 Lacs and we paid tax of Rs.40,000/-, and the same net wealth continous for the asst.year 2009-10.Now tell me whether we have to pay tax again this year and also whether we have to file return for the asst.year 2009-10 coz we have already filed wealth tax return for asst.year 2008-09 and also paid tax.Suppose the same net wealth continous for every asst.year, what is the solution for this.

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5 Replies

karthikeyan.v (Chartered Accountant) (523 Points)
Replied 27 February 2010

Dear Wanishree

As far as wealth tax is conderned, it is not the income part that is taxed, but only the wealth that is in excess of 15 lac is taxed @ 1 %.

There fore even if you have furnished a return and paid tax, for the assessement year 2008-09, you still have to pay tax for the AY 2009-10 if the net wealth is in excess of 15 lakhs

Regards

karthi

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Member (Management) (325 Points)
Replied 27 February 2010

And remember that the taxable wealth is the wealth as on valuation date i.e.as on 31st of March each year. If you are including lands in the net wealth, then the valuation is bound to change on change of guideline value, since WT speaks about market value. Some states have recently revised the guideline values lately and this may result in a higher valuation.

CA. Abhishek K. Pandey (Manager (Advance)) (901 Points)
Replied 28 February 2010

Also, check that limit for Welth Tax has increased to Rs. 30,00,000.00.

And, yes it is paid every year.

Sonia M Ketkar (B.com CA DISA(ICA) Pursuing CS) (625 Points)
Replied 28 February 2010

Yes Wealth Tax is paid for every A.Y. @ 1% without Edu and Surcharge on Net Wealth at the last moment as on 31st March of F.Y relevant to A.Y . From A.Y 2010-2011 exemption limit has increased to 30 lacs. But for A.Y 2009-10 it was 15 lacs. So u have to pay Tax of Rs.40000/-

Prasanth Nair V (ACA,ACS,CWA Final,Mcom) (557 Points)
Replied 16 March 2010

Wealth Tax is not on the Part of Income, As told earlier, the Valuation Date is Relevant here Your Wealth will be taxed as on the valuation date, irrespective of the wealth taxed previously...