Wealth Tax

Source: ET Wealth – 14 Jan 2013

 

Smart things to know – Wealth Tax

·         Wealth Tax is an annual direct tax imposed on the net wealth of individuals and HUFs with reference to the preceding financial year or the current assessment year

·         Net wealth is calculated as the aggregate value of all chargeable assets on the valuation date, minus the outstanding debts on these assets

·         Financial Assets, one residential property as well as cars, property and other assets used for commercial or business purposes are exempt from wealth tax. Any property rented for at least 300 days in a year also doesn’t attract wealth tax.

·         The taxable assets include real estate and land other than a house, precious metals, including jewellery and bullion, motor cars, urban land and cash more than 50000.

·         Wealth tax is charged at 1% on the amount that exceeds 30 lakh of the net wealth of the assessee on the valuation date, which his 31 March of a financial year.

·         For resident Indians, wealth tax is payable on all taxable assets in India or abroad. For NRIs, wealth tax is applicable only on the assets that are in India.

Bank: Valuation Report

Source: ET Wealth – 14 jan 13

 

Q: I took a home loan from a private bank. After the loan was disbursed, I asked the bank for a copy of the valuation report, but it refused to give it, stating that the report was an internal document and could not be given to customers. Is the bank right in refusing the report or am I entitled to a copy generated by the bank on the property that I am buying?

 

A: the Code of Bank’s Commitment to Customers does not say anything when it comes to certain documents obtained by the bank for the purpose of processing loan applications. These include the valuation report, lawyer’s report and so on. However, since you have already paid the amount for obtaining the valuation report, there is no reason why the bank should not give you a copy. You can submit your representation to the bank in writing. If it sticks to its stand and denies access to the document even after taking this step, you can consider taking up the issue with the banking ombudsman for a clear picture on the matter.