03 May 2012
Ans 1. As per Section 2(e) of Wealth Tax Act,
"assets” includes property of every description, movable or immovable, but does not include,— (i) agricultural land and growing crops, grass or standing trees on such land ; (ii) any building owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land
Provided that the building is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of rent or revenue by reason of his connection with the land requires as a dwelling house or a store-house or an out-house ;
Hence, crop on agricultural land is not assesed for wealth tax. Further tools for agriculture are not asset as they are not covered under section 2(ea).
Ans 2. Further As per Section 2(ea) of Wealth Tax Act, asset means: (i) any building or land appurtenant thereto (hereinafter referred to as “house”), > whether used for residential or > commercial purposes or > for the purpose of maintaining a guest house or > otherwise including a farm house situated within twenty-five kilometres from local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board
Hence, Farm house situated at a distance of 25kms from delhi (which have municipality), gets covered under wealth tax act.
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