Liability to pay tax amounts to debt as per taxation law

[bpagrawal]

Liability to pay tax amounts to debt as per taxation law
The liability to pay the tax is a debt within the meaning of s. 2(m) and it arose on the valuation date during the accounting year and therefore, was deductible in computing the net wealth of the: assessee
Under s. 3 of the Wealth Tax Act, the net wealth of the assessee is assessable as on the valuation date, at the rate or rates specified in the Schedule to the Act. "Net wealth" is the amount by which the aggregate value of the assets if the assessee as on the said date is in excess 689
of the aggregate value of the debts owed by it. A debt owed with in the meaning of s. 2(m) can be defined as a liability to pay in praesenti or in futuro an ascertainable sum of money. A debt is a present obligation to pay an ascertainable sum of money, whether the amount is payable in praesenti or in futuro, debitum in praesenti, solvendum in futuro. But a sum payable upon a contingency does not become a debt until the said, contingency has happened. A liability to pay income-tax is a present
http://www.lawweb.in/2012/08/liability-to-pay-tax-amounts-to-debt-as.html