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FICCI seeks lowering of wealth tax
FICCI has asked the Government to abolish the wealth tax or to reduce it from existing one per cent to 0.5 per cent.
FICCI has asked the Government to abolish the wealth tax or to reduce it from existing one per cent to 0.5 per cent.
Suggesting this in its pre-budget memorandum, FICCI said levy on tax on wealth tantamounted to double taxation as wealth was only accumulated savings of income over a period of time on which income tax had already been paid.
It pointed out that the revenue collection from this was only Rs 150 crore.
FICCI also asked urban land held as stock-in-trade to be removed from the definition of assets.
Urban land was included in the definition of assets chargeable to wealth tax. However, any land held as stock-in-trade was exempt for a period of 10 years from the date of its acquisition.
FICCI said the land held by a developer or builder during activities like acquisition, assembly of land and its development, can be treated as stock-in-trade which can be excluded from purview of wealth-tax.
It was equally necessary that the ten year time limit relating to exemption of stock-in trade from wealth tax be linked to completion of the project and taking over of services by the local bodies instead of linking it to the date of acquisition, FICCI said.
FICCI also demanded to exclude motor cars used in business assets from taxable wealth as it was meant for efficient and smooth running of business. Bureau Report
Suggesting this in its pre-budget memorandum, FICCI said levy on tax on wealth tantamounted to double taxation as wealth was only accumulated savings of income over a period of time on which income tax had already been paid.
It pointed out that the revenue collection from this was only Rs 150 crore.
FICCI also asked urban land held as stock-in-trade to be removed from the definition of assets.
Urban land was included in the definition of assets chargeable to wealth tax. However, any land held as stock-in-trade was exempt for a period of 10 years from the date of its acquisition.
FICCI said the land held by a developer or builder during activities like acquisition, assembly of land and its development, can be treated as stock-in-trade which can be excluded from purview of wealth-tax.
It was equally necessary that the ten year time limit relating to exemption of stock-in trade from wealth tax be linked to completion of the project and taking over of services by the local bodies instead of linking it to the date of acquisition, FICCI said.
FICCI also demanded to exclude motor cars used in business assets from taxable wealth as it was meant for efficient and smooth running of business. Bureau Report