Be prepared to shell additional tax on assets if it exceeds 1 crore
Can the Finance Minster and his team followed by ministers, political leaders and bureaucrats lead the show if this change is implemented?
OUR FINANCE in the forth coming budget session is likely to announce an additional tax on assets to the tune of 1 per cent in case the total worth of your assets crosses Rs 1 crore on 31st March every year. Such asset include even kitchen utensils. So tax assesses need to calculate the total worth or valuation of their assets - be it movable or immovable property namely land, building, car, electrical appliances, jewelry, watches, computers, furniture, antiques items, watches, deposits in the bank (cash and fixed deposits, etc), shares and so on as it can be a long list.
But there are questions to be raised and addressed.
1. The land and building and farm house: its value is to be taken as on 31st March every year but at what rate; and is it the price bought for or the current value?
2. In case of antique items how is the valuation to be arrived at?
3. How will a car's value be assesed? Is it at its Current Value after deprecation or at the value when purchased for?
4. In case of jewelry is there any Valuation Certificate needed from an authorized jeweler?
5. Similar is the case of electrical products and computers - again a difficult equation.
6. Furniture valuation will be again a problem.
It will indeed be an uphill task to valuate such items as referred above. Am of the very strong opinion that let the Finance Minister and his Income Tax Team lead the show in the Assessment year 2012-13 followed by the ministers, political leaders, bureaucrats, engineers, and all the babus employed in public dealing departments so as to set an example for the general Public. Can and will they do it? Probaably, never.