I made a cash gift of R7 lakh to my wife in 2010 with which she bought some jewellery. The value of the jewellery as on March 2013 was R8,10,000. What would be the implication of this while computing the net wealth of my wife for the assessment year 2013-14?
Section 4(1)(a)(i) of the Wealth tax Act,1957 provides that assets held by the spouse of an individual to whom such assets have been transferred by the individual, directly or indirectly, otherwise than for adequate consideration or in connection with agreement to live apart, shall be included in computing the net wealth of the individual. Thus, in your case, the value of jewellery held by your wife shall be included in computation of your net wealth for assessment year 2013-14.
My husband died in July 2013 while he was a director in a reputed company. The company gave me certain amount as ex gratia. Will such amount be taxable?
The CBDT through a circular No. 573 dated August 21, 1990, has clarified that a lumpsum payment, made gratuitously or by way of compensation or otherwise, to the widow or other legal heirs of an employee, who dies while still in active service, is not taxable as income under the Income Tax Act, 1961. Further, reliance can be placed on decision of the Mumbai Tribunal in the case of ACIT Vs late Anil Bhatia. Thus, it may be inferred that such amount shall not be taxable in your hands.
I acquired a plot of land for R40,000 in May 1979. I am planning to sell this for R13 lakh. What will be the cost of acquisition?
As per Section 55 of the Income Tax Act, 1961 (the Act), where a capital asset became the property of the assessee before April 1, 1981, the assessee has the option