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WEALTH TAX

VIKASH (CA FINAL 2ND GROUP) (142 Points)

25 March 2010

Sir,

In wealth tax -

If assessee (individual) have $ 5000 (Rs 250000 app.) then what will be include in net wealth of assessee ?

Vikash Mangal

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5 Replies

Richa (B.Com, CA Final Stdnt) (113 Points)
Replied 25 March 2010

Vikas ji.........is ur mean 250000rs. then u can take 200000 as net wealth. whereas there is total exemption of 1500000. ok correct if m wrong

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Amir (Learner) (4016 Points)
Replied 25 March 2010

Dear Vikas,

Agree with the above reply.

First it will be converted in INR as on 31st March and then amount in excess of Rs. 50,000 will be included.

Further, Richa now the exemption limit has been raised to 30Lacs from by Finance Act 2009(No.2)

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 25 March 2010

The act states that cash in hand, in excess of fifty thousand rupees, of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account.

So Rs. 50,000 should be reduced for computing net wealth

VIKASH (CA FINAL 2ND GROUP) (142 Points)
Replied 25 March 2010

In wealth tax -

if trust got exemption u/s 5(1)(i) then will trust avail exemption u/s 5(1)(vi) ?

manoj (student) (5205 Points)
Replied 26 March 2010

if the trust divert it income/ property to specified person r spend on the purpose which r not related to objective of trust then section5(1)(vi) invoked