INSTRUCTIONS
FOR FILLING UP RETURN OF NET WEALTH (FORM BB)
(To be detached before filing the return in a paper
form)
This form is to
be filled up by all wealth-tax assessees [individual, Hindu Undivided Family
(HUF) or company]. This form is applicable for assessment years 2014-15 and
subsequent years.
These notes are
meant to help you in filling up this return form. They are not a substitute for
law. Notes are given only in respect of items that need some explaining.
GENERAL
·
Every
individual or HUF or company, whose net wealth exceeds the maximum amount which
is not chargeable to wealth tax is obligated to furnish his return of net
wealth.
·
This
is an annexure-less return and shall not be accompanied by a statement showing
the computation of the tax payable on the basis of the return, or proof of the
tax and interest paid, or any document or copy of any account or form of report
of valuation by registered valuer required to be attached with the return of
net wealth under any provisions of the Wealth-tax Act, 1957. In case return is
filed in paper form, all such documents enclosed with the return will be
detached and returned to the person filing the return.
·
This
return shall be furnished electronically under digital signature. However, for
assessment year 2014-15, an individual or a Hindu Undivided Family to whom the
provisions of section 44AB of the Income-tax Act, 1961 are not applicable may
furnish this return in paper form. From the assessment year 2015-16 and
subsequent assessment years, this return form shall be furnished by all
assessees electronically under digital signature.
·
All
Parts and Columns must be filled in the manner provided hereunder. If any Part
or column does not apply, please mention NA (Not Applicable) and do not put any
mark or symbol.
·
In
case of return filed in paper form, if space provided under any item of the
Return Form is found insufficient, then give the computation in respect of such
item on separate sheet(s) using the columns indicated for the purpose under the
said item in the Return Form and attach that to the Return. The sum totals of
such computation done should be indicated in the columns provided under the
relevant item in the Return Form. Similarly, any other information asked for in
this Form, which cannot be completely furnished on account of paucity of space,
may be furnished on a separate sheet.
·
Sections
referred in these instructions are the sections of the Wealth-tax Act, 1957 and
references to rules are references to the rules of the Wealth-tax Rules, 1957.
BRIEF
SCHEME OF THE LAW
Computation
of net wealth
·
Value
of an asset, for an assessment year is to be declared as on the valuation date.
Valuation date in relation to an assessment year under the Wealth-tax Act, 1957
means the last day of the previous year as defined in section 3 of the
Income-tax Act, 1961. Thus, for the Assessment Year 2014-15, the valuation date
will be 31.3.2014.
·
Value
of an asset, other than cash, is to be determined on the basis of the rules in
Schedule III to the Wealth-tax Act, 1957.
·
In
the computation of net wealth including net wealth of other persons includible
in assessee’s net wealth on the valuation date, the assessee is to furnish in
the given columns details of all immovable and movable property held by him and
held by any other person which are includible in his/her net wealth of the
valuation date.
·
Details
of immovable properties mentioned in section 2(ea) of the Wealth-tax Act, 1957
held by the assessee or by any other person includible in his/her net wealth on
the valuation date are:-
(i) Any building or
land appurtenant thereto (hereinafter referred to as “house”) whether used for residential
or commercial purposes or for the purpose of maintaining a guest house or
otherwise including a farm house situated within twenty-five kilometers from
local limits of any municipality (whether known as Municipality, Corporation or
by any other name) or a Cantonment board, but does not include –
(1) a house meant exclusively for
residential purposes and which is allotted by a company to an employee or an
officer or a director who is in whole-time employment, having a gross annual
salary of less than ten lakh rupees
(2) any house for residential or
commercial purposes which forms part of stock-in-trade;
(3) Any house which the assessee may
occupy for the purposes of any business or profession carried on by him.
(4) any residential property that has
been let out for a minimum period of the three hundreds` days in the previous
year;
(5) Any property in the nature of
commercial establishments or complexes;
“Urban land” means land situate—
(i) in any area which is comprised
within the jurisdiction of a municipality (whether known as a municipality,
municipal corporation, notified area committee, town area committee, town
committee, or by any other name) or a cantonment board and which has a population
of not less than ten thousand; or (ii) in any area within the distance,
measured aerially,—
(I) not being more than two kilometers,
from the local limits of any municipality or cantonment board referred to in
sub-clause (i) and which has a population of more than ten thousand but not
exceeding one lakh; or
(II) not being more than six kilometers,
from the local limits of any municipality or cantonment board referred to in
sub-clause (i) and which has a population of more than one lakh but not
exceeding ten lakh; or
(III) not being more than eight
kilometers, from the local limits of any municipality or cantonment board
referred to in sub-clause (i) and which has a population of more than ten lakh,
The definition of urban land excludes
the following:
(A) Land classified as agricultural land
in the records of the Government and used for agricultural purposes;
(B) Land on which construction of a
building is not permissible on account of any law or the time being in force;
(C) Land occupied by any building which
has been constructed with the approval of the appropriate Authority.
(D) Unused land held by the assessee for
industrial purposes for a period of two years from the date of its acquisition
by him;
(E) Any land held by the assessee as
stock-in-trade for a period of ten years from the date of its acquisition by
him; and
·
Details
of assets belonging to any other person but includible in net wealth of the
assessee:
(i) Assets transferred to certain
relatives or to other persons for the benefit of those relatives or assets transferred
under revocable transfer. [Section 4(1)(a)(i), 4(1)(a)(iii), 4(1)(a)(v), 4(1)(a)(vi)].
(ii) Assets held by a minor child not
being a married daughter of such individual except assets acquired by the minor
child from his income referred to in the proviso to subsection (IA) of section
64 of the Income-tax Act, and held on the valuation date. Where the marriage
subsists, these assets are includible in the hands of the parent, whose net
wealth is greater, and where the marriage does not subsist, in the net wealth
of the parent maintaining the minor child.
(ii) “Assets held by a physically or
mentally handicapped minor child as specified in section 80U of the Income-tax
Act, will not be clubbed with the net wealth of the parent.”
(iii) Interest of a minor child admitted
to the benefits of partnership in the assets of a firm. [Section 4(1)(b)]
(iv) Individual
property of assessee converted into the property of Hindu Undivided Family after
31.12.1969. [Section 4(1A)].
(v) Moneys
gifted by means of book entries [Section 4(5A)].
·
Clause
(m) of section (2) of the Wealth-tax Act provides that only debts which have
been incurred in relation to the assets assessable to wealth-tax will be
allowed to be deducted in computing the net wealth.
·
Under
the provisions of section 6, in the case of an individual who is not a citizen
of India or of an individual or Hindu Undivided Family not resident in India or
resident but not ordinarily resident in India, or of a company not resident in
India during the year ending on the valuation date, the value of assets located
outside India is not to be included in the net wealth.
·
All
sheets must be signed by the assessee.
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