Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT Audit :: form 3cd :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: due date for vat payment :: empanelment :: VAT RATES :: TDS :: TAX RATES - GOODS TAXABLE @ 4%
General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

FM proposes to tweak wealth tax
August, 13th 2009

The proposed direct tax code makes major changes in the manner in which wealth tax is to be calculated and the rates applicable to it. In effect, the changes ensure that those with relatively modest wealth go out of the net, while some of the big fish might end up paying more despite lower rates.

The code proposes to raise the threshold limit for wealth tax to become applicable from the current Rs 30 lakh to Rs 50 crore. It also reduces the tax rate from 1% to 0.25%. However, these give-aways are offset by including financial assets in the definition of wealth for the purposes of this tax.

Financial assets include shares held in various companies and fixed deposits. Neither of these was included in wealth so far. The code proposes that all assets will be valued at thecost or at current market value, which ever is lower.

In the case of promoter holdings in listed or unlisted firms, this could mean a significant new source of revenue for the government. The code clarifies that stock kept for stock-in-trade will not be included in assets. But promoters holding obviously cannot be classified as stock-in-trade and hence will qualify for wealth tax.

This could be particularly problematic in cases where the investment is of relatively recent origin, since older investments will have low historical values.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

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