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: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: TDS :: VAT Audit :: due date for vat payment :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: VAT RATES
 
 
Direct Tax »
 Can the TDS liability under GST be fixed with retrospective effect?
 New direct tax law coming
 Government sets up a panel to draft new direct tax law
 High court judges, experts brainstorm on likely GST litigations
 Businesses need not deduct GST on advances received for goods supply: CBEC
 Redress taxpayers' grievances on priority: CBDT to I-T department
 No tax relief on EPF interest if not employed: ITAT
  CBDT signs 7 more unilateral APAs with taxpayers
 Income tax returns (ITR) filing: Get capital gains tax exemption on new property; here is how
 Reach out to non-filers of GST returns: CBEC to fields offices
 CBDT may shelve plan to seek corporate tax estimates in advance

Why it is important to pay wealth tax and file the return
July, 02nd 2012

The din generated by income tax returns tends to push the other taxes into the background. The wealth tax is the neglected child of the direct taxes family.

However, remember that ignoring wealth tax can lead to serious problems for a taxpayer, with the penalty ranging from 100% to 500% of the unpaid tax. "In extreme cases of willful default, a taxpayer may be punished with imprisonment ranging from six months to seven years," says Sunil Jain, partner of Gurgaon-based law firm J Sagar Associates.

Wealth tax raked in only Rs 787 crore for the exchequer in 2011-12, which was a piffling 0.16% of the total direct tax kitty of Rs 4,93,912 crore. The securities transaction tax brings in seven times as much revenue as the wealth tax. "The government is not paying too much attention to wealth tax because the collection is very low," says Amarpal S Chadha, tax partner, Ernst & Young.

This laxity on the part of the government has encouraged taxpayers to ignore their wealth tax liability. According to the Wealth Report 2012 of the Boston Consulting Group, India's rich are becoming richer. Nearly 28,000 Indian households crossed the threshold to become dollar millionaires (financial investments of over Rs 5.5 crore) in 2011.

Though financial assets do not invite wealth tax, real estate and gold, two favourite investment options of the super rich, are included. In the past 4-5 years, crores of rupees of HNI money has flowed into real estate, while gold prices have more than doubled in the past three years.

However, this is not reflected in the wealth tax collection, which has grown at a tardy pace, to say the least ( see char t) . However, this could soon change. A committee headed by former CBDT chairman, MC Joshi, has sought stricter punishment for tax evasion. The panel wants the minimum imprisonment for income tax and wealth tax evasion to be three years.

Most investors in real estate have no idea about the tax implication of buying a second property. A second house won't attract wealth tax only if it is rented out for at least 300 days in a year.

It can be a double whammy for the owner if the house is lying vacant, for he will not only have to pay tax on the notional rental income, but the value of the house will be added to his net taxable wealth. This is why savvy investors prefer to put money in commercial real estate, which does not attract wealth tax.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

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