CBDT asks super-rich tax payers to declare cost price of expensive assets

As per new instructions from CBDT, people having annual income of more than Rs 50 lakh will have to disclose the cost price of all their assets like land, building and jewellery in the ITR forms for AY 2016-17. These assets would also include utensils, apparels, furniture studded with precious stones, and ornaments made of gold, silver, platinum or any other precious metal or alloy.

"The amount in respect of assets to be reported will be the cost price of such assets to the assessee," the Central Board of Direct Taxes (CBDT) has said while issuing instructions on the new ITR forms.

Even if the precious items were gifts, the tax payers would still have to declare the cost at which the previous owner had acquired it, as well as the value additions.

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"In case where the cost at which the asset was acquired by the previous owner is not ascertainable and no wealth-tax return was filed in respect of such asset, the value may be estimated at the circle rate or bullion rate, as the case may be, on the date of acquisition by the assessee as increased by cost of improvement, if any, or March 31, 2016," the instructions said.

Not only this, they will also have to declare whether such items and their value were already disclosed at the time of filing wealth tax returns.

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