Wealth tax

[KAMAL PODDAR]

I have a capital of 31 lacs. I have given 25 lacs on loans. Five lacs investments balance in banks and cash in hand. Do i have to file wealth tax Return and am i liable to wealth tax and if so how much.

[CAGOPALJI AGRAWAL]

You are not liable to pay wealth tax as only specified assets (not accruing income) are treated as assets under wealth tax act.

AI Summary

Wealth tax liability depends on specified assets; loans and bank cash generally do not create taxable wealth. The operative point: wealth tax applies to specified assets as defined under the statute, and amounts advanced as loans or held as bank balances/cash are not treated as those specified taxable assets, so loan advances do not constitute taxable wealth and ordinarily do not create a wealth tax filing liability.