Your IncomeTax Returns May Require Disclosure of All Your Assets..!

The intention was mainly to get information about those high-networth individuals (HNIs) who had not been paying wealth tax.

 Paying Wealth Tax..!

Many HNIs have not been declaring all their assets to avoid paying wealth tax. That bliss is set to end soon, with the finance ministry planning to make it mandatory for individuals and Hindu undivided families (HUFs) to report assets and liabilities in income-tax (I - T) return forms.

Senior officials in the ministry said this could be notified soon. "Last year (2012), reporting of assets and liabilities was made mandatory for individuals with foreign assets. This year (2013), it might be extended to Indian assets," said an official.

The official added the intention was mainly to get information about those HNIs who had not been paying wealth tax. This 2012-13 year, wealth tax collections are likely to be Rs 866 crore - much less than the Budget estimate of Rs. 1,244 crore. For coming 2013-14, the finance ministry has set a collection target of Rs. 950 crore.

While declaring the assets, the individual or / HUF might have to provide the value of assets on the basis of acquisition cost.

For instance, if a house or / car was bought in 1998, the cost of the property or  / the vehicle at the time of purchase would have to be mentioned.

Checking Income Tax Evasion..!

Last year - 2013, the new disclosure for foreign assets was introduced in ITR 2, ITR 3 and ITR 4, wherein the government asked whether the taxpayer had "any asset outside India or  / signing authority in any account located outside India".

Individuals with foreign assets can not file ITR 1, which is used by individuals with income from salary / pension, one home and income from other houses.

The disclosure provision for domestic assets might be made in all four ITR forms.

What is Wealth Tax?

This proposal is primarily aimed at checking tax evasion and boosting collections. In the Union Budget 2013 - 14, the government has levied a surcharge of 10% on annual taxable income above Rs. 1 crore and imposed tax deducted at source (TDS) on transfer of immovable property costing more than Rs. 50 lakh.

Wealth tax is charged at 1% of the value of assets exceeding Rs. 30 lakh and does not include one residential property and financial assets like shares and mutual Fund uints.. 

In India Now There is No Wealth Tax

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