Wealth tax act, 1957 bls

Wealth tax act, 1957 bls

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  MATHEWS SAJI 16CO60112
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  1] Applicability  Sec.1 (1) This Act may be called the Wealth-tax Act, 1957. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 1st day of April, 1957.
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  Objectives  Wealth taxwas introduced to wipe out excess gains arising out of property and wealth to reduce inequalities of income and wealth.
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  CHARGEABILITY  The WealthTax is charged for every assessment year in respect of the net wealth of the corresponding valuation date of  every individual  Hindu Undivided Family  company @1% of the amount by which net wealth exceeds Rs.15 lakh.
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  Sec. 2(ea) Assetsmeans (i) any building or land appurtenant thereto • whether used for residential or commercial purpose or • for the purpose of maintaining a guest house or • including a farm house situated within 25 kms from local limits of any municipality or a Cantonment Board
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  Sec. 2(ea) Assetsmeans (ii) Motor Cars other than those  used by the assessee in the business of running them on hire  As stock in trade  Case Law : In the case of Southern Roadways Ltd. Vs. CWT[2002] 122 Taxman 126 (Mad.), it was held that “Motor Car” does not cover Heavy Vehicles”
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  Sec. 2(ea) Assetsmeans (iii) Jewellery, bullions, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals Provided that where any of the said assets is used by the assessee as stock in trade, such asset shall be deemed as excluded from the assets specified in this sub-clause Note : Gold Deposit Bond is not an Asset
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  Sec. 2(ea) Assetsmeans  (iv) Yachts, boats and aircrafts (Other than those used by the assessee for commercial purposes) Case Law : In the case of Amalgamated Electricity Co. Ltd. V State of Rajasthan AIR 1983 Raj. 154, it was held that if the asset is used for doing business, the object of which is to make profit, then the asset is said to be used for “Commercial Purposes”. It is nowhere laid down that in order to satisfy the requirements of Commercial Purpose, aircraft should be used as air taxi.
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   (v) UrbanLand Urban Land means land situated— - In jurisdiction of Municipality or Cantonment Board with population >= 10000 - In any area with in Distance from Population Local Limits of Municipality or Cantonment Board - 2 Kms >10000<=100000 - 6 Kms >100000<=1000000 - 8 Kms >1000000 (w.e.f. 01/04/2014 amendment made -distance is to be measured aerially)
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   (vi) Cashin Hand - For Individuals & HUF : >Rs.50000/- - For other Persons : Amt. not recorded in books of account
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  Exclusions from Applicabilityof Wealth Tax Act, 1957  By virtue of Sec. 45 of the Act No tax shall be levied in respect of Net Wealth of - Any Company registered u/s 25 of the Companies Act, 1956 - Any Co-Operative Society - Any Social Club - Any Political Party - A Mutual Fund specified u/s 10(23D) of the Income Tax act - The Reserve Bank of India
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  Present Status  Wealthtax has been abolished in the union budget presented by Hon. finance minister Mr. Arun Jately on 28-Feb-2015.  The wealth-Tax has been replaced with additional surcharge of 2 per cent on super rich with a taxable income of over `1 crore annually
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