IndiaFilings » Learn » Form BB – Wealth Tax

Form BB – Wealth Tax

Last updated : March 7th, 2020 04:36 pm

Form BB – Return of Net Wealth

Form BB is a wealth tax form which has been introduced as a replacement for Form BA, which was in use until the financial year 2014-15. Form BB is used for the purpose of filing wealth tax returns. This article examines the various legal provisions connected with Form BB. Wealth tax is imposed on those taxpayers who comprise richer sections of the society. The intention of imposing wealth tax is to ensure parity amongst the taxpayers. However, wealth tax was abolished in the budget of 2015, with effect from the financial year 2015-16.

Applicability

This form is applicable for every individual, HUF or company – whose net wealth exceeds the specified taxable limit. Individuals or Hindu Undivided Family (HUF) who are required to undergo tax audit are mandated to file the returns digitally using a digital signature, whereas other assessees may opt for a manual method of filing returns.

Form BB

Form BB is reproduced below for reference:

Form BB

Contents of Form BB

Form BB is divided into varied parts, the contents of which are enumerated below:

Part A – General

1. Name of the assessee
2. PAN number of the assessee
3. Door Number/Flat/Block number
4. Area of the locality of residence
5. Date of Birth of the person/Incorporation of the firm
6. Town/city/district
7. State
8. Pin code
9. Gender
10. Phone number with STD code
11. Mobile number
12. Income-tax ward/circle
13. E-mail address
14. Citizenship in the country
15. Date of filing of return (choose among the options in the check-box)
16. If it is a revised filing, the receipt number and date of filing the original return
17. Valuation date
18. Confirm whether it is your first return in the checkbox provided
19. Residential status
20. Whether or not the return is being filed by a person in a special case referred to in Chapter 5. If yes, furnish the required information.
21. Income-tax assessment status

Part B- Computation of Net Wealth

The net wealth shall be the sum of all the values specified below:

1.  The aggregate value of immovable property
2.  The aggregate value of the movable property [other than jewellery and other items which are meant for ornamental use by the taxpayer and family members]
3. The aggregate value of jewellery, and other wearable items (as per item no.12 of Schedule JE)
4. The permitted net wealth of other persons (as per item B of Schedule INW)
5. The aggregate value of the interest in assets held in a Firm/AOP as partner/member (as per item B of Schedule IFW)

Part B – Computation of Tax Liability of Net Wealth

1. Tax payable on net wealth
2. Interest payable on late filing of return
3. Total tax and interest payable (This will be derived by adding the above two)
4. Tax and interest paid
5. The total amount payable (Enter 3, if its value is greater than 4, else enter 0)
6. Refund (Enter 4 if its value is greater than 3, else enter 0)

Taxpayers should note that it is important to remember to leave your bank account details at the end of the sheet to facilitate the processing of refunds if any.

Part B – Details of Tax and Interest Paid

This part of the form must be inclusive of the following details:

1. BSR Code
2. Date of deposit of tax or interest paid
3. The serial number of challan
4. The total amount of tax or interest paid

The above procedures will be followed by a verification which requires the concerned person to state that he/she has furnished the information in an accurate and conclusive manner and that the person is competent to file the return. The verification will be concluded after specifying the designation of the person (if it is a company/Hindu Undivided Family) and by marking his/her signature, as well as the place and date of verification.

Schedule IP – Immovable Property

Schedule IP of the form should consist of the particulars pertaining to immovable property held by the assessee. The following particulars must be specified in the form:

1. Description
2. Complete address
3. Survey/Plot number of land
4. Value as per schedule 3
5. Debt owned in relation to the immovable property
6. Net amount (4-5)
7. Name of registered valuer
8. Registration number of valuer
9. Date of report by valuer
10. Aggregate net amount of all immovable properties

Schedule MP – Movable Property

Schedule MP consists of particulars pertaining to the movable property of the assessee. The following particulars shall be specified:

1. Value as per schedule 3
2. Liabilities pertaining to the asset
3. Net amount
4. Aggregate net amount of all movable properties

Schedule JE – Jewellery

Schedule JE consists of particulars pertaining to jewellery and other valuables:

1. Description of item
2. Gross weight
3. Net weight of the precious metals owned by the taxpayer
4. Description and weight of precious or semi-precious stones
5. Value of each precious or semi-precious stone and the total value of each stone
6. Total value of jewellery as per Schedule 3
7. Liabilities pertaining to the jewellery
8. Net amount
9. Name of registered valuer
10. Date of report by valuer
11. Aggregate net amount of jewellery

Schedule INW -Specifiable Net Wealth of Other Persons

Schedule INW consists of details pertaining to the total net wealth of another person who is connected with the concerned assessee. The particulars to be included are as follows:

1. Name of the person
2. Relationship
3. PAN of the other person
4. Aggregate value of all assets
5. Debt owed in relation to such assets
6. Net amount

Schedule IFA – Possession of Specified Assets

Schedule IFA of the form consists of particulars pertaining to the assets of a firm or Association of Persons (AOP) or member thereof:

1. Name of firms/AOP
2. Address of Firms/AOP
3. PAN of Firms/AOP
4. Name of other partners/members
5. Assessee’s profit-sharing ratio
6. Value of the assessee’s interest in the assets of firm/AOP as per Schedule 3
7. Debt owed in relation to such interest
8. Net amount

Schedule ACE – Assets referred to in section 2(ea) which are claimed as exempt under section 5

Schedule ACE of the form consists of details pertaining to the assets specified in Section 2(ea) which are exempt under Section 5. The following particulars shall be included:

1. Description of assets
2. Value
3. Debt owed in relation to such asset
4. Reason for claiming exemption

Schedule OPR – Other Properties to be Filled by Individual/HUF

This part of the form consists of the description, complete address and survey/plot number of land with respect to agricultural land, non-agricultural land, commercial building and residential building. Also, pertinent details of the movable property should be included.