Wealth Tax

[Guest]

Can income tax liability outstanding as on valuation date be deductible from wealth in case of individual?

[CA Rachit Agarwal]

No, bother are payable under separate Acts.

Income under Income Tax Act, 1961 and Wealth Tax under Wealth Tax Act, 1957.

AI Summary

Deductibility of income tax liability: outstanding income tax not deductible from wealth under separate taxation schemes. An outstanding income tax demand on the valuation date is not deductible from an individual's assessable wealth because income tax and wealth tax obligations arise under separate Acts, and liabilities under one enactment do not reduce the taxable base under the other.