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
Latest Expert Exchange
Direct Tax »
 Notification No. 52 /2018 Central Board of Direct Taxes
 Tax relief! You don't have to pay income tax on this money gift
 No Due Date Extension..?? CBDT asks to file IT Returns and Tax Audit Reports before 30th September
 Here's how to get them Latest ITR forms ask for more income details:
 Notification Central Board Of Direct Taxes
 Life insurers seek separate investment window in income-tax deduction
 Taxpayers may lose this benefit Income tax returns (ITR) filing
 CBDT Notifies Rules for Computing Fair Market Value of Inventories converted to Capital Asset
 CBDT report India inked 67 APAs in FY18
  Pay tax on this PF account withdrawal Income tax return (ITR) filing
 Government notifies withholding tax waiver for masala bonds

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 2018 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