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CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,         Mylapore,    Chennai - 600 004. Tel: +91 - 44 - 249...
INTRODUCTION         CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,                                 • Weal...
LEGAL FRAMEWORK         CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,         Mylapore,    Chennai - 600 ...
WEALTH TAX ACT, 1957         CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,         Mylapore,             ...
CHARGING OF WEALTH TAX         CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,        Section 3 of wealth T...
WHO ARE NOT SUBJECT TO                                           WEALTH TAX?         CHENNAI3rd Floor, ‘Creative Enclave’,...
ASSET [sec. 2(ea)]         CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,                                 ...
ASSETS         CHENNAI                                 1.   House3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,  ...
DEEMED ASSETS         CHENNAI3rd Floor, ‘Creative Enclave’,                                 • Asset transferred to spouse,...
Cont…         CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,                                 • Converted p...
ASSETS EXEMPT FROM WEALTH                                             TAX         CHENNAI3rd Floor, ‘Creative Enclave’,   ...
DEBT         CHENNAI3rd Floor, ‘Creative Enclave’,                                 • Debts owed are interpretable to mean ...
NET WEALTH         CHENNAI                                 According to sec 2(m), net wealth3rd Floor, ‘Creative Enclave’,...
VALUATION DATE         CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,        • A very important date in th...
RETURN OF WEALTH         CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,                                 • ...
CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,         Mylapore,    Chennai - 600 004. Tel: +91 - 44 - 249...
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Wealth tax

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Wealth tax

  1. 1. CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, WEALTH TAX Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 Lakshminarayanan Alaguraja Advocate Altacit Global EMAIL info@altacit.com WEBSITE www.altacit.com
  2. 2. INTRODUCTION CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, • Wealth Tax is a tax on the value of wealth owned by a person, levied under the Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Wealth Tax Act,1957. Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 • It is one of the direct taxes. COIMBATORE BB1, Park Avenue, • It is annual tax. It is charged for every assessment year commencing from 1st # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 April, 1957. • The tax is levied @ 1 per cent on the amount of wealth as on 31st March of EMAIL info@altacit.com every year, where such amount exceeds WEBSITE Rs.30,00,000. www.altacit.com
  3. 3. LEGAL FRAMEWORK CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. • Wealth tax is charged under the Tel: +91 - 44 - 2498 4821 BANGALORE provisions of WEALTH TAX ACT,1957 read with WEALTH TAX RULES, 1957 Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com
  4. 4. WEALTH TAX ACT, 1957 CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, • THIS Act came in to force with effect from 1st April, 1957. Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, • This Act extends to the whole of Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 India. COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. • This Act is divided into 8 chapters Tel: +91 - 422 – 6552921 and contains 119 (in numbers) sections and 3 Schedules. • This Act has detailed provisions EMAIL regarding levy and collection of info@altacit.com WEBSITE wealth tax. www.altacit.com
  5. 5. CHARGING OF WEALTH TAX CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Section 3 of wealth Tax Act, 1957 provides that Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 every: BANGALORE •Individual, Suite 920, Level 9, Raheja Towers, 26-27, M G Road, •HUF or Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 •Company, COIMBATORE BB1, Park Avenue, # 48, Race Course Road, who is an assessee shall be charged wealth tax Coimbatore - 641018. Tel: +91 - 422 – 6552921 @1% on the amount by which his net wealth, determined on the basis of nationality and residential status, on the relevant valuation date, exceeds Rs. 30,00,000. EMAIL info@altacit.com WEBSITE www.altacit.com
  6. 6. WHO ARE NOT SUBJECT TO WEALTH TAX? CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Section 45 of Wealth Tax Act provides that no Chennai - 600 004. Tel: +91 - 44 - 2498 4821 wealth tax shall be levied in respect of the net BANGALORE Suite 920, Level 9, wealth of the following persons: – Section 25 company Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE – Any co-operative society BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. – Any social club Tel: +91 - 422 – 6552921 – Any political party – A mutual fund specified u/s10 (23D) of the Income tax Act. EMAIL info@altacit.com WEBSITE www.altacit.com
  7. 7. ASSET [sec. 2(ea)] CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, • The term Assets has been defined Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 under section 2(ea) of wealth Tax BANGALORE Suite 920, Level 9, Act, 1957. Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 • This definition covers only 6 types of COIMBATORE BB1, Park Avenue, assets, basically these are unproductive in nature. # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 • It is to be noted that for the purpose of charging wealth tax “ there must be an asset with in the meaning of EMAIL info@altacit.com sec.[2(ea)] WEBSITE www.altacit.com
  8. 8. ASSETS CHENNAI 1. House3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, 2. Motor Car Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE 3. Jewellery, Bullion, etc., Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, 4. Yachts, boats and aircrafts, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 5. Urban Land, 6. Cash in Hand, EMAIL info@altacit.com WEBSITE www.altacit.com
  9. 9. DEEMED ASSETS CHENNAI3rd Floor, ‘Creative Enclave’, • Asset transferred to spouse, Section 4(1)(a)(i).148-150, Luz Church Road, Mylapore, Chennai - 600 004. • Asset held by minor child, Section 4(1)(a)(ii). Tel: +91 - 44 - 2498 4821 BANGALORE • Asset transferred to a person or AOP, Section 4(1) Suite 920, Level 9, Raheja Towers, (a)(iii). 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 • Asset transferred under revocable trust, Section COIMBATORE 4(1)(a)(iv) BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. • Asset transferred by an individual to sons wife or sons minor child including step child, Section 4(1) Tel: +91 - 422 – 6552921 (a)(v) • Asset transferred by an individual for the benefit of sons wife, Section 4(1)(a)(vi) EMAIL • Interest in the asset of the firm, Section 4(1)(b). info@altacit.com WEBSITE www.altacit.com
  10. 10. Cont… CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, • Converted property, Section 4(ia). Mylapore, • Transfer by means of entries in the Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, book, section 4(5a) Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE • Impartible assets section 4(6) BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 • House from a co-operative housing society section 4(7) EMAIL info@altacit.com WEBSITE www.altacit.com
  11. 11. ASSETS EXEMPT FROM WEALTH TAX CHENNAI3rd Floor, ‘Creative Enclave’, • Property held under a trust148-150, Luz Church Road, Mylapore, • The interest of an assessee in the coparcenaries property of an HUF Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, • Any one building in the occupation of a former Raheja Towers, 26-27, M G Road, ruler of a princely state which has been declared Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 by the central government as his official COIMBATORE residence immediately after the BB1, Park Avenue, # 48, Race Course Road, commencement of the constitution act 1971. Coimbatore - 641018. Tel: +91 - 422 – 6552921 • Jeweler in possession of a ruler which has been recognized before the commencement of the wealth tax act. • One house or part of the house belonging to an individual or an HUF or a plot of land comprising EMAIL an area of 500 sqmts or less. info@altacit.com WEBSITE www.altacit.com
  12. 12. DEBT CHENNAI3rd Floor, ‘Creative Enclave’, • Debts owed are interpretable to mean the liability to pay a certain amount of148-150, Luz Church Road, Mylapore, Chennai - 600 004. money either in present or in future. Tel: +91 - 44 - 2498 4821 BANGALORE • It is an obligation to pay a liquidated or Suite 920, Level 9, Raheja Towers, 26-27, M G Road, certain sum of money. Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, • It is not the point of time of payment that determines whether the claim or Coimbatore - 641018. Tel: +91 - 422 – 6552921 demand is a debt. • There must be an actual debt owing on the valuation date. EMAIL info@altacit.com WEBSITE www.altacit.com
  13. 13. NET WEALTH CHENNAI According to sec 2(m), net wealth3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 means the amount by which the aggregate value of all assets wherever BANGALORE Suite 920, Level 9, Raheja Towers, located belonging to the assesse on 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, the valuation date, is in excess of the aggregate value of all the debts owed Coimbatore - 641018. Tel: +91 - 422 – 6552921 by the assessee on the valuation date. EMAIL info@altacit.com WEBSITE www.altacit.com
  14. 14. VALUATION DATE CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, • A very important date in the wealth tax. Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 • All the assets held by the assessee on that day BANGALORE Suite 920, Level 9, are counted for the purpose of wealth tax. Raheja Towers, 26-27, M G Road, Bangalore - 560 001. • 31 March preceding the relevant assessment Tel: +91 - 80 - 6546 2400 COIMBATORE year is the valuation date. BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com
  15. 15. RETURN OF WEALTH CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, • Sec 14 deals with the filing of return of wealth. Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, • It is statutorily obligatory for every 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 person to file the return if his net wealth COIMBATORE BB1, Park Avenue, exceeds maximum amount which is # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 chargeable to wealth tax. • He can file a belated or revised return at any time before the expiry of one year from the end of the relevant assessment EMAIL year or before the completion of info@altacit.com WEBSITE assessment, whichever is earlier. www.altacit.com
  16. 16. CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com

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