Wealth tax

Are you going to file wealth tax return of 2012 now?

Anyways one need to file wealth tax return if the net wealth of assessee exceeds ₹30 lakh and he needs to pay tax @1% on such wealth. Net wealth means total assets less any loan if taken.

So you need to get the valuation of your land and then if it's value exceeds 30 lakh then you need to file wealth tax return and as far as jewellery goes you received it as your grandfather died so he transferred you as a will as you are a legal heir so if anyone ask for a proof you just can give a notarized statement that this jewellery is your ancestral jewellery and you are not required to show it now as you are filing return under section 44AD.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi

Wealth tax to be paid on assets valued as on 31.march every year.

You have to get the valuation of land .Further plot of land not exceeding 500 Sq. Mtrs is under exempt assets.

No Income tax to be paid on ancestral jewellary .

Hope it helps

Dear Sir,

Firstly, you need to get the valuation report of land.

Basic exemption limit for wealth tax liability is Rs. 30 lakh. So for up to wealth (assets) of Rs. 30 lakh, you have to no need to pay tax.

Wealth tax on assets with value exceeding Rs 30 lakh was abolished in 2015-2016.

In case of jewellery, you will have to prove it through either a will of the deceased,wealth tax returns or some other documentation.

There is no requirement to show it in ITR as you are filing return u/s 44AD.

The wealth tax rules gives specific provisions for determining values of specific assets.  For vacant land one can determine market value as on year end for paying wealth tax. 

Where the jewelry is acquired you are not liable for income tax, unless it is your business income. So no implications for 44AD.  Only when you sell this jewelry, you will be liable for capital gains tax. 

There is no single way to prove that the gold in your possession is through inheritance – certain things to substantiate could be :

1) Show tax receipts that prove you have paid wealth tax until 2014-15 for the inherited gold you possess.  Death certificate of deceased and the year you acquired the gold and its reflection in wealth tax return.

2) You can show a will that states that the gold in your possession has been passed on to you.

3) If it is a gift, present any evidence to show that it is a gift – in case distributed amongst all kids equally, any documentation or proof.

4) Show valuation reports for the inherited gold if tax hasn't been paid for it. If the jewellery has been remade, show receipts for the same.

5) Show photographs to indicate the jewellery is inherited and not a new buy.

6) If you have insured gold, then you can show this insurance as proof.

7) If you have pawned gold during distress, then those receipts would serve as pro

Land :

Value of Land will be indexed & tax will be paid only on ltcg gain arising out of sale after considering indexation.

Jewelry: Yes tax will be payable. But it will be payable on at time of sale of jewelry. 

it will be shown under capital asset & will be considered as long term gain.

Hi

Likely from both,due to mismatch of turnover amount.

Hope it helps

Ideally, you may get the notice from both departments.

Any department can send notice as there is a mismatch but more likely is GST department as you have already showed more income in income tax return but income tax department can also ask for penalty for mismatch.

lolz. Just for one Invoice you wont have to bear the burden. Still my dear return can be revised & you can correct your mistake in that.

Hi

You are likely to receive notice from the department where you have shown less sales (I.e GST).

However, you should include this invoice in the next return and then you can explain this to the department.