Wealth Tax Valuation of Motor Cars Are Different Than When Used For Personal Purpose !

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Section 2(ea) of Wealth Tax Act provides list of assets chargeable to wealth tax. Land, building ,jewellery ,yacht,boats etc are expressly provided as assets chargeable to wealth tax. Some of these assets may be used by a person in his business. For example , motor cars used in business is also chargeable to tax under Wealth Tax Act. Only exception, in case of motor cras is when it is used for business of being given in hire. Now , in that business , the owner of asset may be claiming depreciation .The W.T.Act provides that, in such case, the valuation of assets under a business will be made in accordance with Rule 14 (2)  , but the valuation on market value will also have to be done and a comparison only can provide the real answer what should be the value of asset used in business.

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