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2014

Mandatory filing of Wealth Tax Return only by Electronic means

  • Vide Notification No. 32/2014 dated 23-06-2014, CBDT has made mandatory filing of Wealth Tax Return only by electronic means for certain persons including Company and an assessee being individual or HUF who is liable to audit u/s 44AB.
  • From Assessment Year 2014-2015 onwards, Company and an assessee being individual or HUF who is liable to audit u/s 44AB are required to furnish Form BB (Return of Net Wealth) electronically under digital signature. Some of the important points are :
    • New wealth tax return form BB (E-Filing) shall be applicable from assessment year 2014-15 for Years Prior to this Form BA will continue to remain applicable.
    • E filing of wealth tax return is mandatory for all type of persons for assessment year 2014-15 onwards except for Individual / HUF to whom provision of section 44AB (tax audit) is not applicable in assessment year 2014-15.
    • Individual / HUF to whom provision of section 44AB (tax audit) is not applicable in assessment year 2014-15 may file wealth tax return on paper form.
    • Exemption to Individual / HUF from e-filing of form BB is granted only for AY 2014-15.so from next year (AY 2015-16) all person are required to e file wealth tax return with digital signature.
    • Form BB shall not be accompanied by any document i.e.- statement of computation of tax payable, valuation report of registered valuer, proof of tax or interest deposit.
 

FAQs on Wealth Tax

 

Q 1. What is Wealth tax and on whom and when it is applicable?

Wealth Tax is applicable on Individual, HUF and a company if the net wealth of such person exceeds Rs. 30 Lakh. Wealth tax is charged @ 1% on net wealth exceeding Rs. 30 Lakh.

 

Q 2. What is the meaning of net wealth?

Net wealth means assets minus debt incurred for such asset.

 

Q 3. What is the meaning of asset as per Wealth Tax Act?

Asset includes:

  • Motor Cars (Other than used by the assessee in the business of running them on hire or used by the assessee as stock in trade)
  • Yachts, boats and aircrafts (other than used by the assessee for commercial purposes)
  • Jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal. (other than used by the assessee as stock in trade)
  • Any building or land (with some exceptions like):
    • One residential home is exempt from Wealth Tax or urban land measuring 500 sqm or less.
    • Any residential property which has been let out for a minimum period of 300 days in the previous year
    • Any house occupied by the assessee for the purpose of any business or profession carried on by him
    • Commercial establishments or complexes
  • Cash in excess of Rs. 50000 in case of individual or HUF
  • Deemed Assets i.e assets transferred without consideration to family etc.
  • Assets of minor child barring some exception
  • Value of assets in partnership firm to be clubbed with the assets of partner
 

Q 4. What is the last date of filing return?

Last date to file the return is:

  • 31st July for Individuals or HUF
  • 30th Sep for Company and individual or HUF whose accounts are required to be audited u/s 44AB
 

Q 5. What can happen if I do not pay the tax or file the return?

Penalties:

  • Belated or revised return can be filed within one year from the end of assessment year after paying 1% per month of tax as penalty for delay.
  • Penalty upto 100% of tax in case of non-payment of wealth tax
  • Penalty upto 500% of tax in case of concealment of wealth tax
  • In case of willful default, imprisonment upto 7 years can be imposed
Financial Management