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Rule 2E - Value of certain liabilities not to be taken - Wealth Tax Rules, 1957Extract Value of certain liabilities not to be taken. 1 2E. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.] --------------------- Notes:- 1. Before omission rule 2E it was read as under : The following amounts shown as liabilities in the balance sheet shall not be taken into account for the purposes of rule 2A : ( a ) capital employed in the business other than that attributable to borrowed money; ( b ) reserves, by whatever name called; ( c ) any provision made for meeting any future or contingent liability ; ( d ) any debt owed by the assessee which has been specifically utilised for acquiring an asset in respect of which wealth-tax is not payable under the Act : Provided that where it is not possible to calculate the amount of debt so utilised, it shall be taken as the amount which bears the same proportion to the total of the debts owed by the assessee as the value of that asset bears to the total value of the assets of the business. Explanation . Provision for any purpose other than taxation shall be treated as a reserve.
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