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€ Also called closed corporation. € . € More than half of the shares are held by fewer than 5 individuals. and are not publicly held.A firm whose shares of common stock are owned by relatively few individuals and are generally unavailable to outsiders. € Private companies.

€ Sale must take place with one of the other existing shareholders management of the business may overlap with the primary shareholders. € The € Privately . held corporation.

The extent of ownership management and control is versatile. € .The corporation does not end with the death of the shareholders. It depends on the state law and the options chosen by the incorporators. € Extent of ownership participation in management . € Limited liability . € Continuity of existence .Make company -changing decisions much more rapidly.Shareholders are insulated from personal liability from the debts of the corporation.

with both the corporation and its officers and/or shareholders having liabilities for taxes on income derived from the corporation's activities.The corporate form is complex because of the laws and the documents involved.There are often restrictions placed on the transfer of shares either by state law or by agreement of the incorporators..There will likely be two levels of taxation. € Complexity . € Taxes . € Transferability of interest .

€ ASSETS: 1. Motor Car. House. 3. Cash in Hand. etc. 6. . Urban Land. Jewellery. Yachts. 4.€ Section 7(1): Valuation of assets other than cash shall be determined in the manner laid down in schedule III of the wealth Tax Act. 2. boats and aircrafts. Bullion. 5.

Steps for valuation of immovable property: € a) Compute Gross Maintainable Rent (GMR) € b) Compute Net Maintainable Rent (NMR) € c) Capitalization of NMR € d) Adjustment in Capitalization value for:(i) Unbuilt Area (ii) Unearned increase in the value of land (applicable for leasehold land only) .

Property is let out GMR shall be: -Annual Rent (Calculated Below) or Property not let out GMR shall be: -Annual value as assessed by the local authority or . .Annual value assessed .If not assessed by the local authority then by the local authority annual rent which the owner can Whichever is higher reasonably expected to receive had such property been let.

Gross Maintainable Rent (GMR) Less: -Amount of tax levied by local authority Less: -15% of GMR NMR xxxx xxxx xxxx xxxx .

whichever valuation date is later. 1971. may. valuation date next following the date on which he became the owner of the house. . at the option of the assessee.€ € € The value of a house belonging to the assessee and exclusively used by him for residential purposes throughout the period of 12 months immediately preceding the valuation date. valuation date relevant to the assessment year commencing on the 1st day of April.

(ii) Non-Depreciation assets = Book Value. .€ € € € € Where the assessee is carrying on a business for which accounts are maintained by him regularly. (i) Depreciable assets = Written-Down Value. (iii) In the case of closing stock its value adopted for the purposes of assessment under the Income-tax Act for the previous year relevant to the corresponding assessment year. then the value of the assets shall be determined as follows: (a) Where the asset are disclosed in the balancesheet then value shall be taken to be.

Computation of net wealth of the firm or association and its allocation amongst the partners or members. .€ € The value of the interest of a person in a firm of which he is a partner or in an association of persons of which he is a member shall be determined in the manner provided in rule 16.

€ € € € . ´Life tenantµ means a person for the duration of whose life the life interest is to subsist.The value of the life interest of an assessee shall be arrived as under: € Life Interest = Average Annual Income × [(1/p+d) -1] P = Annual premium for the whole life insurance without profits on the life of the life tenant for unit sum assured.5%. D = i/1+I I = rate of interest which shall be 6.

The value of the jewellery on the valuation date does not exceed Rs. € . 5 lakhs. € A report of a registered valuer in the prescribed form shall be furnished by the assessee along with return of wealth tax.

€ The value of any asset. shall be fair market value in the open market on the valuation date. being an asset which is not covered by rules 3 to 19. other than cash. .