Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: due date for vat payment :: list of goods taxed at 4% :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: VAT Audit :: VAT RATES :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd
 
 
Direct Tax »
 How to pay tax on bitcoins profit?
 Tax liability on taxable income: Clarification from CBDT is a must
 Income Tax Returns (ITR) filing for salaried staff, others: Advance tax payment deadline nearing, pay or face penalty
 To avoid extra TDS, give tax-saving proofs
 TDS on Rent under section 194I of Income Tax Act
 New direct taxes code aims for lower rates, wider base
 Towards a new direct tax system
 Central Board of Direct Taxes (CBDT) signs two Indian Advance Pricing Agreements (APAs) in November, 2017
 CBDT asks I-T to slap higher tax rate on fraudulently revised ITRs
 CBDT to accept transfer pricing MAP sans riders
 CBDT relaxes norms for MAP & APAs

Abolition of wealth tax opens up plethora of opportunities
March, 17th 2015

The Budget 2015-16 has sought to abolish wealth tax, which was perceived to have a high collection cost, while providing low yield to the exchequer. Currently, it is levied on an individual, HUF or a company, if the net wealth of such an entity exceeds R30 lakh on March 31.

Taxpayers are required to value assets as per wealth-tax rules for computation of net wealth. For certain assets such as jewellery, they are required to obtain a report from a registered valuer. The process is even more onerous for assesses residing overseas or in remote locations.

Hence, the proposal to remove wealth tax from FY16 is a win-win situation, both for taxpayers and the I-T department.

With the abolition of this tax, people may now take a relook at their wealth portfolio. They may now be induced into investing more in land in urban areas and other assets that were earlier subject to wealth tax.

Under the proposal, holding more than one plot of land in an urban area will be free from wealth tax and would attract capital gains tax upon sale only. At the time of the sale, the taxpayer will be able to reduce his I-T liability by investing in a residential house or specified securities and bonds provided the property was held for 36 months. Similarly, taxpayers with more than one house would be free from wealth tax, though the actual or fair-rental income will continue to be taxed under the I-T Act.

While the inclination towards investing in jewellery may still continue, alternatives may also be considered now. Taxpayers would be able to invest physical gold in the Gold Monetisation Scheme, which will allow them to earn interest on their metal accounts.

But all this doesn’t mean that the I-T department won’t be monitoring your wealth. The finance minister has indicated that information regarding assets that are currently required to be furnished in the wealth-tax return form will be captured in the I-T return form itself.

Taxpayers will have to wait for clarity on various aspects of the new rules. However, some amount of discipline in maintaining a detailed list of assets, and documents in support of the source of funds in buying these, is called for. Individuals who are not liable to wealth tax may find this change an additional burden, but the intent of tax authorities is to ensure a seamless flow of information to curb flow of black money and evasion of tax.

Transfer of assets within the family as a gift or through a will is a normal phenomenon in India. One needs to exercise abundant caution while reporting the same in the return forms. Determination of the ownership of assets within the family or the HUF may be a tedious task.

An individual needs to determine his wealth tax liability based on assessment of his taxable net wealth on last day of the year. It was, hence, possible to dispose of assets before the end of the year to avoid bringing the assets under wealth tax net. In line with reporting of foreign assets, it is likely that the reporting of assets in the I-T return will not be restricted to year-end assets held only — rather, the rules may seek to capture assets held at any time during the year.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions