TIOL-DDT 1044 · Tuesday, 3 February 2009 · story 1 of 6

Wealth Tax Rules – Fees for Valuer - revised

As per Rule 8C of the Wealth Tax Rules, the fees to be charged by a registered valuer for valuation of any asset shall not exceed the amount calculated at the following rates

On the first Rs. 50,000 of the asset as valued

1/2 per cent of the value;

On the next Rs. 1 lakh of the asset as valued

1/4 per cent of the value;

On the balance of the asset as valued

1/8 per cent of the value.

Now this is changed to:

(a) On the first Rs. 5,00,000 of the asset as valued

1/2 per cent of the value;

(b) On the next Rs. 10 lakhs of the asset as valued

1/5 per cent of the value;

(c) On the next Rs.40 lakhs of the asset as valued

1/10 per cent of the value;

(d) On the balance of the asset as valued

1/20 per cent of the value

Where the amount of fees calculated is less than Rs. 50, the registered valuer may charge Rs. 50 as his fees.

Inflation has caught up and this Rs. 50/- is now enhanced to Rs. 500/-.

Why can't the government think of abolishing this tax? The Budget Estimate for 2008-09 for wealth tax is Rs. 325 Crores. Education Cess brings in more than ten times that Revenue.

CBDT Notification No. 15/2009, Dated: January 30, 2009