MAY I REQUEST YOU TO GIVE YOUR VALUABLE GUIDANCE ON THE FOLLOWING ?
CAN A PARTNERSHIP FIRM HAVE TO PAY WEALTH TAX, IF ITS BALANCE SHEET SHOWS PROPERTIES BOUGHT WORTH RS.1 CRORES IN FIRM'S NAME ? BECAUSE VALUE OF ALL PROPERTIES EXCEEDS THRESHOLD LIMIT OF WEALTH TAX OF 50 LACS.
PROPERTIES ARE FLATS, SHOPS AND A BUNGALOW. ALL THESSE PROPERTY ARE VACANT. FIRM'S BUSINESS IS 'TO BUY/SELL/GIVE ON RENT' THE IMMOVABLE PROPERTIES.
26 January 2015
Since the properties must be classified as Stock-in- Trade of the Firm, wealth tax would not be applicable provided as the definition of Asset under wealth tax act specifically exclude Any building or land appurtenant thereto which forms part of stock-in-trade.
So if the above properties are stock in trade of your business than no wealth tax liability arises.
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