Please help me to solve following query; 1. Mr. X is owner of land & building (4 floors) constructed thereon. 2. Out of them 2 floors are occupied by Mr. X for residential purpose, 1 floor is given on rent and 1 floor is sold to some other person.
My query is as follows;
whether in the above case, 1. Wealth tax will be applicable and if yes then up to what extent? 2. Can we consider full land and building as one unit and take exemption of “One house property” under wealth tax.
08 October 2012
The 2 floors occupied by Mr.X are exempt.The full land cannot be considered to be self occupied.
1 floor sold is not covered under wealth tax as he would have received proceeds which have taken a different hspe of an asset,which must be checked for taxability.
The one floor let out is taxable for the purpose of wealth tax .Valuation rules are to be applied.
Loans any thereon can be subtracted. Still of the netwealth exceed s 30 lakhs ,the excess chargeable at 1%.
CAclubindia
