Wealth Tax
Ishan
(Querist) 07 March 2010
This query is : Resolved
Is a person liable to wealth tax for assets held by partnership firm in which he is a partner?
If yes, than how the value is to be determined?
Please Help .....
A V Vishal
(Expert) 07 March 2010
While regarding the case of partnership firms and association of persons the wealth of the firm is allocated to individual partners or members in an equitable manner.
Assets owned by Partnership Firms and AOPs:
Please note that partnership firms and association of persons (AOPs) are themselves not liable to pay wealth tax. However, interest of a partner/member in the specified assets forming part of the assets of the partnership firm/AOP would be includible in the hands of the individual in the manner specified in Sec. 4(1)(b) of the Act r/w Schedule III to the Act.
For this purpose, the following steps will be necessary:
Identification of the specified assets l Computation of the net wealth of a firm/AOP as per the rules contained in Schedule III; l Determination of the interest of a partner/member therein, the value of which would be includible in his hands.
Kumar Thadhani
(Expert) 08 March 2010
Yes I agree with expert Mr. Vishal.
