Wealth tax
Bhaskar Dey
(Querist) 02 January 2014
This query is : Resolved
Sir,
My brother has a Two storied house in Kolkata. He resides on the first floor and the ground floor has been given on rent. About three months back he purchased a flat, also in Kolkata, the cost of which is more than thirty lakhs. So I understand that he will have to pay Wealth Tax in March 2014. He is ready to pay Wealth Tax but unable to decide which amount will be considered for Wealth Tax purposes and so we need Expert’s opinion and advice
He has paid Rs.44,00000/- to promoter, Rs.52000/- more as Service Tax, totaling Rs.4452000/.
Rs. 330000/- as Stamp Duty and Rs.52000/- as Registration Charge, totaling Rs.4834000/-. Then he spent Rs.180000/- for electrical fittings, painting, kitchen etc., totaling Rs.5014000/-. All figures in approximate.
I understand that he needs to pay @1% on the amount above Rs.3000000/-. But we are unable to decide which amount we should consider for Wealth Tax purposes. Is it only the amount paid to Promoter, or the amount including service tax, or the amount including Registration charge and stamp duty, or the total amount?
Respected Experts, please give your opinion and valuable advice. Thanking you.
B.Dey
Devajyoti Barman
(Expert) 02 January 2014
You better take help of a tax consultant in Kolkata.
Devajyoti Barman
(Expert) 02 January 2014
It would be on total amount paid to the developer
ajay sethi
(Expert) 02 January 2014
raise query in CA club india .com
R.K Nanda
(Expert) 02 January 2014
consult tax lawyer.
Bhaskar Dey
(Querist) 03 January 2014
Respected Experts,
Thank you all for your help.
C. P. CHUGH
(Expert) 07 January 2014
For the purposes of wealth tax all immovable properties are first to be evaluated at fair market value as on 31st day of March every year and then the net taxable wealth is charged to wealth tax at prescribed rate. In your case you have first to determine FMV of both houses as on 31st March. You have the option of declaring one house as Self Occupied and exempt from Wealth Tax. If the remaining net wealth is in excess of maximum wealth not chargeable to tax, WT is payable at 1% on so much amount which exceeds Rs. 30.00 lacs.
Bhaskar Dey
(Querist) 08 January 2014
Thank you so much Mr.Chugh. But how will I know the FMV? My brother has all the receipts and other documents relating to the payments made. Will these be of any help determining the FMV. Thanks again, B.Dey
C. P. CHUGH
(Expert) 08 January 2014
You are required to get your properties evaluated by a registered valuer to arrive at FMV on any valuation date.
Bhaskar Dey
(Querist) 11 January 2014
Thanks again, Mr. Chugh.
