Skip to main content

File your wealth tax returns

The season to file income tax returns is on and most taxpayers will try to quickly wrap up the process. But most people ignore the importance of filing annual wealth tax returns.

If you start paying wealth tax all of a sudden, officials can seek records of how you acquired this wealth. Filing wealth tax returns regularly helps you create evidence of ownership of assets and also how they have increased year-on-year. However, only a few are prepared for this. Reason: Valuation of wealth is often a tedious process. Take, for instance, valuation of land, where one has to get an approved valuer, either a civil engineer or an architect, to start the process. The problem arises when the land on the outskirts of a city or in some remote village. One has to travel there, find the market value, and so on...

Technically, wealth comprises six types of assets: Land and building; cars; yachts, boats and aircraft; jewellery and bullion; articles made of gold, silver or platinum; cash-in-hand in excess of Rs 50,000.

Transferring any of these assets or gifting to your spouse, minor children or even your daughter-in-law will still lead to taxation because they are considered "deemed assets".

However, there are some exceptions. As far as land and building go, there may be some exemptions if these are being used for residential purposes. A commercial property being used for business purposes could also be excluded. Residential and commercial properties owned and rented out for more than 300 days in the assessment year can also be excluded.

Also, if you have availed of a loan to buy these assets, the amount will be reduced from your wealth while calculating the tax.

Taxation: Unlike income tax, there are no separate tax slabs for payment of wealth tax. The threshold of Rs 30 lakh is common for all. Anything in excess is taxable at one per cent. There is no surcharge or education cess.

For example, if your total wealth amounts to Rs 50 lakh, only Rs 20 lakh is taxable at one per cent — that is, wealth tax liability will be Rs 20,000.

Valuation: An income tax department-approved valuer can provide you a valuation report, termed as fair market value, of your jewellery, land and building. For motor cars, yachts, boats and aircraft, the insured declared value is considered.

There are a few benefits while valuing certain assets. Assets like cars, yachts and aircraft depreciate each year. People can do a rough valuation of assets as long as they are not close to crossing the threshold of Rs 30 lakh. As and when they feel they are approaching the threshold, they must start getting their wealth formally valued.

Assets like land, building and jewellery are important and need to be valued regularly. The value of these assets is rising continuously, sometimes exponentially. Remember, even if you are out of the ambit of wealth tax, it is advisable to file wealth tax returns.

Exceptions: While filing wealth tax return is important, here are some interesting things one must know: While income tax is on income earned in a particular year, wealth tax is based on holdings on a particular date (March 31).

For example, if you owned aproperty or a car but sold it before March 31, the wealth goes down by that extent. The sale proceeds will become a part of your other income and taxed.

Unlike income tax, there are no separate slabs for wealth tax

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO will be open for subscription from 16th May 2014 to 30th May 2014. The key features of the scheme are as mentioned below:   Type of Scheme A Close Ended Capital Protection Oriented Income Scheme Benchmark Crisil MIP Blended Index Fund Manager Mr. Anil Bamboli , Mr. Vinay R Kulkarni & Mr. Rakesh Vyas New Fund Offer (NFO) Period 16 th May 2014 to 30 th May 2014. Minimum Application Amount Rs. 5000 and in multiples of Rs.10 thereafter Plans/ Options Offered Growth and Dividend Payout Facility Liquidity To be listed For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Indian Railways Seat Availability and Train Fare Enquiry

Enter the PNR for your train booking to find its status. Your 10 Digit PNR : Are you looking for Indian Railways Seat Availability information for trains between any two Indian Railway stations? Well, here is a detailed guide to find out seat availability and train fare information for journey between any two stations by any train on any chosen journey date. The holiday season is around and Indian all around are busy making Indian Railways Reservation .But before making the reservation, they would like to check berth availability information and here is a detailed step by step guide to check seat availability and train fare. How to check Indian Railways seat availability · 1. Go to the Indian Railways Passenger Reservation Enquiry page to check seat availability by clicking here [link] · 2. Enter the first few characters of the Originating Station against Source Station Name. For eg., if the origination station is chennai, enter "Che" against Sou

SBI Magnum Taxgain

Grown 37 times in 23 years- SBI Magnum Taxgain Scheme   Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGet Rich on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com OR Call us on 94 8300 8300  

How to PPF Account extension after maturity

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed. Public provident fund or PPF remains one of the most popular savings options for the long term despite a gradual decline in interest rates over the years. PPF accounts have a maturity period of 15 years and they can be extended. If there is no fund requirement, financial planners say, PPF account holders should extend the account beyond 15 years. In terms of income tax implications, PPF accounts enjoy the benefit of EEE (exempt-exempt-exempt) status . Under Section 80C, contribution up to Rs 1.5 lakh in a financial year qualifies for income tax deduction. The interest earned and maturity proceeds are also tax free. What are your options when a PPF account matures? 1) A PPF account can be closed after the expiry of 15 financial years from the end of the year in which the account was opened. 2) The subscriber can retain his
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now