Saturday, March 10, 2012

Direct tax Law 2010 (Solved)

Computation of Net Wealth: Net Wealth represents the amount by which the total value of all assets including deemed assets but excluding exempt assets, belonging to the assessee on the valuation date exceeds the value of all debts owed by the assessee on the valuation date incurred in relation to the taxable assets.
Procedure for computation of net wealth is as follows:
Computation of Net wealth of the assessee
Assets owned by assessee on valuation date including deemed assets and excluding exempt assets

Less Deductible debts owed by assessee on the valuation date.

Net Wealth

Less: 15 lacs
X – Y

Wealth Chargeable to tax
X – Y - Z