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Wealth tax return

n000b (OWNER) (33 Points)

11 September 2014

As per new rules :

Is it compulsory for all assessees who are under tax audit to file wealth tax return , even if there is no wealth tax liability and has previously never filed wealth tax return ?

So inshort : Do you have to file a NIL wealth tax return all details of valuation, etc ?

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CA. Ranu Jain (Chartered Accountants) (19 Points)
Replied 11 September 2014

"Every Individual, Hindu Undivided Family and Company whose net wealth exceeds the maximum amount which is not chargeable to wealth tax in any previous year ending of 31st March is liable to file the wealth tax return.

The maximum limit of net wealth not chargeable to tax under the provisions of the Wealth tax Act, 1957 is Rs. 30 lakhs at present."

"Wealth Tax is applicable on Individual, HUF and a company if the net wealth of such person exceeds Rs. 30 Lakh. Wealth tax is charged @ 1% on net wealth exceeding Rs. 30 Lakh."

"Vide Notification No. 32/2014 dated 23-06-2014, CBDT has made mandatory filing of Wealth Tax Return only by electronic means for certain persons including Company and an assessee being individual or HUF who is liable to audit u/s 44AB."

So It is clear from the above provision and notification that person having net wealth less than 30 lakhs not required to file wealth tax return. And futher it is mandatory for persons having net wealth morethan 30 lakhs has to file return online.

Net wealth means Value of assets minus debts related to assets. However some of the assets excelded from the calculation of the Netwealth as mentioned bwlow:

o One residential home is exempt from Wealth Tax or urban land measuring 500 sqm or less. o Any residential property which has been let out for a minimum period of 300 days in the previous year

o Any house occupied by the assessee for the purpose of any business or profession carried on by him

o Commercial establishments or complexes.

and the assets taken into account for the calculation of net wealth is:

Asset includes:

Motor Cars (Other than used by the assessee in the business of running them on hire or used by the assessee as stock in trade)
Yachts, boats and aircrafts (other than used by the assessee for commercial purposes)
Jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal. (other than used by the assessee as stock in trade)
Any building or land