TaxTMI 
TaxTMI 
Revival of levy of wealth-tax in the case of closely-held companies
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....d appurtenant thereto, other than building or part thereof used by the assessee as factory, go down, warehouse, hotel or office for the purposes of its business or as residential accommodation for its employees or as a hospital, enter, school, canteen, library, recreation enter, shelter, rest-room or lunch room mainly for the welfare of its employees and the land appurtenant to such building or part : Provided that each such employee is an employee whose income (exclusive of the value of all benefits or amenities not provided for by way of monetary payment) chargeable under the head "Salaries" under the Income-tax Act does not exceed eighteen thousand rupees;" 5. Inserted vide Section 87 of the Finance Act, 1988 date....
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....which the public are substantially interested, at the rate of two per cent. Of such net wealth. ^1[Provided that the amount of wealth-tax computed in accordance with the provisions of this sub-section shall, in relation to the assessment year commencing on the 1st day of April, 1988, be increased by a surcharge calculated at the rate of ten per cent. of such wealth-tax.] Explanation : For the purposes of this sub-section, "company in which the public are substantially interested" shall have the meaning assigned to it in clause (18) of section 2 of the Income-tax Act. (2) For the purposes of sub-section (1), the net wealth of a company on the valuation date is in excess of the aggregate value of all the assets referred to in sub-sec....
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....ded that nothing in this clause shall apply to any unused land held by the assessee for industrial purposes ^6[or for construction of a hotel] for a period of two years from the date of its acquisition by him;] ^4[(vi) building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, go down, warehouse, cinema house, hotel or office for the purposes of its business or as a hospital, creche, school, canteen, library, recreational center, shelter, rest-room or lunch room mainly used for the welfare of its employees or used as residential accommodation, except as provided in clauses (via) and (vib), and the land appurtenant to such building or part; (via) any building used as residenti....
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....ections as the Board may, by general or special order, issue for the guidance of the Assessing Officer, having regard to the ratio which the yearly turnover of a business of trading in such assets bears to the average of the stocks of such assets held from time to time during the year in such business ordinarily and other relevant factors.] ^8[(4) The value of any asset specified in sub-section (3) shall be either its value as on the valuation date determined in the manner laid down in Schedule III to the Wealth-tax Act or its value, disclosed in the balance sheet of the company, on the valuation date, whichever is higher. Explanation. For the purposes of this sub-section, "balance sheet", as drawn up on the valuation date, shall have....