TaxTMI 
TaxTMI 
Wealth Tax
kiran modi
Can income tax liability outstanding as on valuation date be deductible from wealth in case of individual?
Outstanding Income Tax Cannot Be Deducted from Wealth; Governed Separately by Income Tax Act and Wealth Tax Act A query was raised about whether outstanding income tax liability as of the valuation date can be deducted from wealth for individuals. A response clarified that it is not deductible because income tax and wealth tax are governed by separate acts, namely the Income Tax Act, 1961, and the Wealth Tax Act, 1957. (AI Summary)