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: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: articles on VAT and GST in India :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: TDS :: form 3cd :: due date for vat payment :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD
 
 
Direct Tax »
 CBDT urges people to protect bank accounts from 'unscrupulous elements'
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30
 Cash trove tax drive dilemma
  CBDT halves Income Tax refunds issue timeline to 15 days for this fiscal
 CBDT signs four unilateral advance pricing agreements

Income tax returns: Disclosure of yachts and more aimed at plugging wealth tax evasion
September, 11th 2013

Rich business persons gearing up to file their income tax returns for fiscal 2013 by the due date of September 30 find themselves saddled with additional disclosure requirements.

They are required to disclose assets — both immovable and movable — held in India in personal capacity as of March 31, 2013. Individuals with taxable income of more than Rs 25 lakh from business or profession (they could be sole proprietors or partners in a firm) have to file their returns in ITR Form 3 or 4. If such assets are held by the proprietary concern or the firm and reflected in its financial statements, no such disclosure is required.
Schedule AL prescribed in these tax return forms has an exhaustive list of assets which require disclosure — such as land, buildings, cash, paintings , insurance policies and yachts (see table). Individual taxpayers can also report any liability against these assets — say a loan taken to buy land.

Income tax returns: Disclosure of yachts and more aimed at plugging wealth tax evasion The top individual income taxpayers comprise around 1% of the 3 crore personal taxpayers in India, yet they contribute nearly 60% or more towards the total personal income tax kitty. However, there is a wide gap between the income tax (I-T ) and wealth tax contributions — wealth tax is paid against certain assets that fall within the definition of 'net wealth'. The Finance Standing Committee, in its report, had pointed out this disparity — for fiscals 2010 and 2011, the wealth tax collections were Rs 505 crore and Rs 682 crore, respectively , as against personal income tax collections of Rs 1.32 lakh crore and Rs 1.45 lakh crore, respectively.

Collection of assets details via I-T returns is being perceived as an attempt to bridge this gap. "The I-T Act has inbuilt checks like compulsory quoting of PAN in various transactions and also the mechanism of deduction of tax at source. However, there is no absolute method for collection of data for wealth tax purposes . Disclosures in I-T returns will help collect such data," explains Dilip B DesaiBSE -4.96 %, vice-chairman, DH Consultants. For businessmen and professionals who have to make such disclosures, it does entail more administrative work, followed by perhaps attending to inquiries by the tax department.

"Even those who file their wealth tax returns regularly will face some difficulties in gathering details for disclosure in their I-T returns. The applicable I-T forms require disclosure of certain assets such as archaeological collections, drawings, painting, sculpture or any work of art that currently do not come within the wealth tax ambit.

 
 
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 Portfolio

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