Abolition of Wealth tax, What is the Solution to file Wealth tax returns now ?

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  1. Nikil Mohan

    Nikil Mohan Member

    Sir, since the Wealth tax is abolished, my clients who were filing their wealth tax returns till now, want to continue filing their wealth tax returns. They do not want a break in reporting their wealth to the Income tax dept. It has got repercussion on regularizing their individual and HUF assets and liabilities. They think that their minds are free, once they file their wealth tax returns, which they were filing for decades. All of a sudden, if I tell them, you need not file your wealth tax returns, they are not prepared to hear me. I will be grateful, if you give a solution to this problem, otherwise, my clients may take away their files and migrate away from me.

    Thank you in advance for your valued time, anticipating your early reply.
  2. Chandrashekar M

    Chandrashekar M Active Member

    You can continue to report your wealth now. It is in the new form in your Income tax returns itself. If your net wealth is below 50 lakhs you need not report, you can only report your wealth above 50 lakhs. The Government has now notified the ITR forms, namely, ITR-1, ITR-2, ITR-2A, ITR-3, ITR-4, ITR-4S, ITR-5, ITR-6 and ITR-7 on March 31, 2016. The Finance Act, 2015 abolished the wealth-tax. Thus, taxpayers are no longer required to file returns of wealth tax from assessment year 2016-17 onwards.

    Information which was to be furnished in wealth tax return will now form part of ITR. Thus, in new ITR forms, namely, ITR-1, ITR-2, ITR-2A and ITR-4S the Government has imposed obligation on Individuals and HUFs having income exceeding Rs 50 lakhs to furnish information regarding assets and liabilities.

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