Notice under section 16(4)(i) Wealth Tax
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post_r2i06
- Posts: 180
- Joined: Fri Feb 15, 2008 6:39 pm
Notice under section 16(4)(i) Wealth Tax
I received notice under above section last week. As with all notices, language is terse and ordered me to submit return before 10th Oct. Last few days have been spent in WT... couple of thoughts on that.. in following posts.
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post_r2i06
- Posts: 180
- Joined: Fri Feb 15, 2008 6:39 pm
Notice under section 16(4)(i) Wealth Tax
Section 16(4) - basically gives power to AO to send notice to "anyone" to file a return. There is not be any "probable cause". AO(assessing Officer) did not give any reasons why he thinks I should file a return.
Section 14 - clearly says one must file return only if he has taxable wealth (i.e. non-productive assets > 30L). So I dont have any such assets, so need not file. But once notice is received I have to file.
Anyways, I picked me phone and called Commissioner of WT, a the number mentioned on notice. That number is non-existent!!. Called another commissioner, he was polite and gentleman enough to give me correct number. So, talked to commissioner who had sent me notice, he was nice enough to talk but basically said " I dont know if you have wealth or not, so file return, I will verify and close case if there is no wealth, no need to be worried ".
Then, as every one of us will do, searched, read all articles on WT.. both in this forum and others. Talked to 4 CAs. Except one, none had handled WT cases!!.
Finally, did following
1. Collected every single bank account, balance on those accounts as on 31/03/2011, 31/03/2012. ( as I had to file returns for two years). Saved all bank statement copies etc , so can be produced ( if asked later on).
2. Laid out all jewelry on floor, filled form O8A. Painful. Luckily, DW and I are not fan of jewelry, so wasn't there much. Had we too much jewelry, we had to go to registered valuer and value them.
3. Calculated value of house ( self occupied) based on schedule-III. Even though house is exempt, I had to calculate its value.
4. Valued the car/scooter .. based on market value ( and insured value on insurance policy)
Filled the form BA.
Added jewelry value and motor cars value.
In Exempt column - added house, reason as Sec 5(vi)
Showed all bank, MFs in India - exempt as they are not asset under 2(ea)
Showed all bank, equity, IRA - exempt as they are not asset under 2(ea)
Attached - computation worksheet, form O8A, Bank/MF balance details, Balance sheet of my proprietorship concern( I basically consult US client, independently).
Went and submitted it to ASK ( ayakar Sampark Kendra) and obtained receipt.
Now - waiting for either to get further notice to submit all documentary evidence or hear nothing back from them.
I think, they should have sent such notice, if I had purchased large piece of land, aircraft, yatch , jewelry. Having done none of that, making me to go through all this made me feel like harassed citizen by mighty govt. Commissioner did say " they do send these notices to top tax paying people"!!. So it’s a crime to pay high taxes? Believe me, I know tons of richer people who pay more taxes than I do and have not received such notices.
Only thing, I can suspect is - this year I filed that schedule-FA in ITR. That may have triggered something.
Section 14 - clearly says one must file return only if he has taxable wealth (i.e. non-productive assets > 30L). So I dont have any such assets, so need not file. But once notice is received I have to file.
Anyways, I picked me phone and called Commissioner of WT, a the number mentioned on notice. That number is non-existent!!. Called another commissioner, he was polite and gentleman enough to give me correct number. So, talked to commissioner who had sent me notice, he was nice enough to talk but basically said " I dont know if you have wealth or not, so file return, I will verify and close case if there is no wealth, no need to be worried ".
Then, as every one of us will do, searched, read all articles on WT.. both in this forum and others. Talked to 4 CAs. Except one, none had handled WT cases!!.
Finally, did following
1. Collected every single bank account, balance on those accounts as on 31/03/2011, 31/03/2012. ( as I had to file returns for two years). Saved all bank statement copies etc , so can be produced ( if asked later on).
2. Laid out all jewelry on floor, filled form O8A. Painful. Luckily, DW and I are not fan of jewelry, so wasn't there much. Had we too much jewelry, we had to go to registered valuer and value them.
3. Calculated value of house ( self occupied) based on schedule-III. Even though house is exempt, I had to calculate its value.
4. Valued the car/scooter .. based on market value ( and insured value on insurance policy)
Filled the form BA.
Added jewelry value and motor cars value.
In Exempt column - added house, reason as Sec 5(vi)
Showed all bank, MFs in India - exempt as they are not asset under 2(ea)
Showed all bank, equity, IRA - exempt as they are not asset under 2(ea)
Attached - computation worksheet, form O8A, Bank/MF balance details, Balance sheet of my proprietorship concern( I basically consult US client, independently).
Went and submitted it to ASK ( ayakar Sampark Kendra) and obtained receipt.
Now - waiting for either to get further notice to submit all documentary evidence or hear nothing back from them.
I think, they should have sent such notice, if I had purchased large piece of land, aircraft, yatch , jewelry. Having done none of that, making me to go through all this made me feel like harassed citizen by mighty govt. Commissioner did say " they do send these notices to top tax paying people"!!. So it’s a crime to pay high taxes? Believe me, I know tons of richer people who pay more taxes than I do and have not received such notices.
Only thing, I can suspect is - this year I filed that schedule-FA in ITR. That may have triggered something.