How to Reduce Motor Car Valuations Under Wealth Tax Act !


Wealth Tax Act is applicable on individual, HUF and company  on assets defined u/s 2(ea) of the Wealth Tax Act 1957. One of the assets chargeable to wealth tax is motor car. It is also true that most of the companies or Individual businessmen buy expensive car as business asset. As the motor car is an asset for wealth tax purpose , every businessmen require to file wealth tax return if net wealth exceeds Rs 30 Lakh . So, if you find that there are motor cars on your balance sheet ,you need to assess the value of the motor cars for wealth tax purpose. And that is when the question -What should be the motor car valuation method  will arise ? Should it be WDV as per Companies Act or Income tax Act. Or there is any method prescribed under Wealth Tax Act it self ?. This post provides you insights on certain issues which can be used for reduction of wealth tax specially when it comes to motor car valuations car.

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