TaxTMI 
TaxTMI 
TaxTMI 
RULES FOR DETERMINING THE VALUE OF ASSETS
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....article in a finished form, meant for personal adornment or for the adornment of any idol, deity or any other object of religious worship made of, or manufactured from, gold, whether or not set with stones or gems, real or artificial, or with pearls, real, cultured or imitation, or with all or any of them and includes parts, pendants or broken pieces of gold ornaments ; (6) "investment company" means a company whose gross total income consists mainly of income which is chargeable to income-tax under the heads "Income from house property", "Capital gains" and "Income from other sources". Explanation.--In this clause, the expression "gross total income" shall have the meaning assigned to it in section 80B of the Income-tax Act ; (7) "jewellery" includes-- (a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stones, and whether or not worked or sewn into any wearing apparel ; (b) precious or semi-precious stones, whether or not set in any furniture, utensils or other article or worked or sewn into any apparel ; 4(8) "preference share" has the m....
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....lue of one house belonging to the assessee,where such house is acquired or the construction whereof is completed after the 31st day of March, 1974, and the house is exclusively used by the assessee for his own residential purposes throughout the period of twelve months immediately preceding the valuation date and the cost of acquisition or, as the case may be, the cost of construction, as increased, in either case, by the cost of any improvement to the house, does not exceed,-- (a) if the house is situate at Bombay, Calcutta, Delhi or Madras, fifty lakh rupees ; (b) if the house is situate at any other place, twenty-five lakh rupees : Provided also that where more than one house belonging to the assessee is exclusively used by him for residential purposes, the provisions of the third proviso shall apply only in respect of one of such houses which the assessee may, at his option, specify in this behalf Net maintainable rent how to be computed. 4. For the purposes of rule 3, "net maintainable rent" in relation to an immovable property referred to in that rule, shall be the amount of gross maintainable rent as reduced by-- (i) the amount of taxes levied by any local authority in....
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....g from month to month, for the number of months (excluding part of a month) during which such deposit was held by the owner in the previous year, and if the owner is liable to pay interest on such deposit, the increase to be made under this clause shall be limited to the sum by which the amount calculated as aforesaid exceeds the interest actually paid; (iv) where the owner has received any amount by way of premium or otherwise as consideration for leasing of the property or any modification of the terms of the lease, by the amount obtained by dividing the premium or other amount by the number of years of the period of the lease; (v) where the owner derives any benefit or perquisite, whether convertible into money or not, as consideration for leasing of the property or any modification of the terms of the lease by the value of such benefit or perquisite; (2) "rent received or receivable" shall include all payments for the use of the property, by whatever name called, the value of all benefits or perquisites whether convertible into money or not, obtained from a tenant or occupier of the property and any sum paid by a tenant or occupier of the property in respect of any obligatio....
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....cted. Adjustment for unearned increase in the value of the land. 7. Where the property is constructed on land obtained on lease from the Government, a local authority or any authority referred to in clause (20A) of section 10 of the Income-tax Act, and the Government or any such authority is, under the terms of the lease, entitled to claim and recover a specified part of the unearned increase in the value of the land at the time of the transfer of the property, the value of such property as determined under rule 3 shall be reduced by the amount so liable to be claimed and recovered or by an amount equal to fifty per cent of the value of the property as so determined, whichever is less, as if the property had been transferred on the valuation date. Explanation.--For the purpose of this rule, "unearned increase" means the difference between the value of such land on the valuation date as determined by the Government or such authority for the purpose of calculating such increase and the amount of the premium paid or payable to the Government or such authority for the lease of the land. Rule 3 not to apply in certain cases. 8. Nothing contained in rule 3 shall apply,-- (a) where,....
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....not be taken into account, namely :-- (i) any amount paid as advance tax under the Income-tax Act; (ii) the debt due to the assessee according to the balance-sheet or part thereof which has been allowed as a deduction under clause (vii) of sub-section (1) of section 36 of the Income-tax Act, for the purposes of assessment for the previous year relevant to the corresponding assessment year under that Act; (iii) the value of any asset in respect of which wealth-tax is not payable under this Act; (iv) any amount shown in the balance-sheet including the debit balance in the profit and loss account or profit and loss appropriation account which does not represent the value of any asset; (v) any asset shown in the balance-sheet not really pertaining to the business; (e) the following amounts shown as liabilities in the balance-sheet shall not be taken into account, namely :-- (i) capital employed in the business other than that attributable to borrowed money; (ii) reserves by whatever name called; (iii) any provision made for meeting any future or contingent liability; (iv) any liability shown in the balance-sheet not really pertaining to the business; (v) any debt owed by the....
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....e deter­mined having regard to the proportion which the value of assets located in India diminished by the debts relating to those assets bears to the net wealth of the firm or association; (b) where the net wealth of the firm or association computed in accordance with this rule includes the value of any assets which are exempt from inclusion in the net wealth under sub-sections (1) and (1A) of section 5, the value of the interest of a partner or member shall be deemed to include the value of his proportionate share in the said assets and, the provisions of sub-sections (1) and (1A) of section 512 shall apply to him ac­cordingly; (c) where the net wealth of the firm or association comput­ed in accordance with this rule includes the value of any assets referred to in sub-section (2) of section 5, the value of the interest of a partner or member shall be deemed to include the value of his proportionate share in the said assets, and the provisions of sub-section (2) of section 512 shall apply to him accordingly. Part F Life Interest Valuation of life interest. 17. (1) For the purposes of sub-section (1) of section 7, the value of the life interest of an assessee shal....
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....b-rule (2), the Assessing Officer may, if he is of opinion, that the value of the jewellery declared in the return,-- (a) is less than its fair market value by such percentage or such amount as is prescribed under sub-clause (i) of clause (b) of sub-section (1) of section 16A; (b) is less than its fair market value as referred to in clause (a) of sub-section (1) of section 16A, he may refer the valuation of such jewellery to a Valuation Officer under sub-section (1) of the said section and the value of such jewellery shall be the fair market value as estimated by the Valuation Officer.] Adjustment in value of jewellery for subsequent assessment years. 19. The value of any jewellery determined in accordance with 15[sub-rule (3)] of rule 18 for any assessment year (hereinafter referred to as the first assessment year), shall be taken to be the value of such jewellery for the subsequent four assessment years, subject to the following adjustments, namely :-- (a) where the jewellery includes gold or silver or any alloy containing gold or silver, the value of such gold or silver or such alloy as on the valuation date relevant to the concerned subsequent assessment year shall be sub....
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....2.951 6. 0.01058 12.965 7. 0.01063 12.955 8. 0.01076 12.930 9. 0.01095 12.893 10. 0.01117 12.850 11. 0.01142 12.803 12. 0.01169 12.751 13. 0.01197 12.699 14. 0.01226 12.644 15. 0.01257 12.587 16. 0.01286 12.534 17. 0.01319 12.473 18. 0.01350 12.417 19. 0.01387 12.351 20. 0.01431 12.273 21. 0.01469 12.207 22. 0.01512 12.132 23. 0.01556 12.057 24. 0.01606 11.972 25. 0.01656 11.888 26. 0.01706 11.806 27. 0.01762 11.715 28. 0.01825 11.614 29. 0.01894 11.505 30. 0.01962 11.399 31. 0.02037 11.285 32. 0.02112 11.173 33. 0.02194 11.053 34. 0.02281 10.927 35. 0.02369 10.804 36. 0.02462 10.675 37. 0.02562 10.541 38. 0.02669 10.400 39. 0.02787 10.249 40. 0.02912 10.093 41. 0.03044 9.932 42. 0.03181 9.771 43. 0.03325 9.607 44. 0.03475 9.441 45. 0.03637 9.267 46. 0.03806 9.092 47. 0.03987 8.911 48. 0.04181 8.724 49. 0.04387 8.533 50. 0.04612 8.333 51. 0.04850 8.130 52. 0.05100 7.926 53. 0.05362 7.722 54. 0.05637 7.518 55. 0.05931 7.310 56. 0.06244 7.099 57. 0.06575 6.888 58. 0.06925 6.676 59. 0.07294 6.464 60. 0.07681 6.255 61. 0.....
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....st day of March immediately preceding the assessment year and the values quoted in respect of such share on the said dates in relation to each of the immediately preceding nine assessment years, or where there is no such quotation on, any of the aforesaid dates, the quotation on the date closest to the said date and immediately preceding such date: Provided that where for any reason the value of such share is quoted in relation to lesser number of assessment years than the said nine assessment years, then the value or values so quoted shall be taken into account for the purposes of the aforesaid average : Provided further that where the assessee opts for the average of the values so quoted, he shall get such values certified by an accountant and attach the certificate to the return of wealth in respect of the relevant assessment year. Explanation.--For the purposes of this rule, "Accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288 of the Income-tax Act. 10. Unquoted preference shares.--(1) Subject to the provisions of sub-rule (2) the value of unquoted preference share in any company shall-- (a) where the preference share is issue....
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....ce-sheet; the net amount so arrived at shall be divided by the total amount of its paid-up equity share capital as shown in the balance sheet; the result multiplied by the paid-up value of each equity share shall be the break-up value of each unquoted equity share, and an amount equal to eighty per cent of the break-up value so determined shall be the value of the unquoted equity share for the purposes of this Act. (3) For the purposes of sub-rule (2),-- (a) the following amounts shown as assets in the balance sheet shall not be treated as assets, namely:-- (i) any amount paid as advance tax under the Income-tax Act; (ii) any amount shown in the balance sheet including the debit balance of the profit and loss account or the profit and loss appropriation account which does not represent the value of any asset; (b) the following amounts shown as liabilities in the balance sheet shall not be treated as liabilities, namely :-- (i) the paid-up capital in respect of equity shares; (ii) the amount set apart for payment of dividends on preference shares and equity shares where such dividends have not been declared before the valuation date at a general body meeting of the company; ....
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....he Companies Act, 1956 (1 of 1956), and a certificate of the auditors relating to such valuation in the prescribed form† shall be furnished to the Assessing Officer and the shareholders of the company; and the valuation made by the auditors shall be taken into account in the assessment of the shareholders of the company. 13. Unquoted equity shares in interlocked companies.--(1) The value of an unquoted equity share in one of the two interlocked companies held by the other interlocked company for the purposes of rule 12 shall be equal to the paid-up value of such share or the value determined under sub-rule (2), whichever is higher. (2) For the purpose of sub-rule (1), the aggregate value of all the equity shares in an interlocked company shall be arrived at by multiplying the maintainable profits of such company by-- (a) the fraction 100/8.5, in a case where the gross total income of the company consists, to the extent of not less than 51 per cent of income chargeable under the head "Income from house property" ; or (b) the fraction 100/10, in the case of any other interlocked company, and the resultant amount divided by the number of such equity shares shall be the val....