valuation of jewellary under wealth tax
P.C. Joshi
(Querist) 13 November 2009
This query is : Resolved
Can anyone guide me how to make valuation of jewellary for filing wealth tax return and computation of tax liability.
Regards
P.c. Joshi
Raj Kumar Makkad
(Expert) 13 November 2009
Current value minus 10% (depreciation) minus the value at the time of purchase is the actual worth over which wealth tax is to be calculated.
A V Vishal
(Expert) 13 November 2009
The value of the jewellery shall be estimated to be the price it would fetch if sold in open market on the valuation date, further the return of net wealth as furnished by assessee must be supported by:
i) A statement in the prescribed form (MOSA) where the value of the jewellery on the valuation dates does not exceed Rs. 5 Lac.
ii) A report of a registered valuer in the prescribed form, where the value of
jewellery on the valuation dates exceeds Rs. 5 Lac.
However in the following cases, the assessing officer may refer the valuation of jewellery to a valuation officer
i) Where he value is estimated by a registered valuer and the AO is of the
opinion that value so estimated is less than its fair market value
ii) In any other case if AO is of the opinion that the fair value of the asset
exceeds the value of the asset returned by 1/3rd the value of the asset as returned or more than Rs 50000.
When the valuation is referred to the valuation officer, the fair market
value of jewellery as determined by the valuation officer will be the value
of the jewellery. The value so determined shall be taken to be the value of
such jewellery for subsequent 4 assessment years subject to the adjustments of change in market value of gold/ silver/ alloy on the valuation date relevant to the assessment year and for the purchase/sale of jewellery during the assessment years.
pkpworld..
(Expert) 13 November 2009
Value of jewellery shall be estimated according to the price which it would fetch if sold in the open market on the valuation date.
Where the valuation of jewellery has been determined by valuation officer for any assessment year, then such valuation shall be adopted for susequent 4 assessment years subject to the following adjustments:(a) if jewellery include gold or silver then the market valude of gold, silver etc as on valuation date shall be substituted (b) Adjustment shall be made in respect of any acquistion or sale of jewellery during the priod.
Wealth tax will be charged @ 1% on the net wealth including jewellery in excess of Rs.15 lakhs on the valuation date (31st March of the Previous Year).
Vineet
(Expert) 15 November 2009
Valuation of Jewellery as on 31st March of the relevant year for which wealth tax is being paid.
It is not mandatory to have any valuation report from registered valuer. However, it is preferable to get the Jewellery valued once and then you can yourself value the same by replacing the value of bullion and diamonds as applicable on the valuation date.
Vineet
(Expert) 15 November 2009
Tax liability as suggested by PKP.
You have to include other items of wealth such as cash in hand above Rs 50,000/-, Residential house (subject to conditions), urban land, motor cars etc.
