03 October 2011
Any immovable property which is considered as specified asset u/s 2(ea) chargeable to wealth tax should be valued as per schedule III rule 3 to 8 or rule 20 (in the case of excess unbuilt area over specified area to total area exceeding 20 percentage).
Rule 5 states if the House property is let out for the entire year then annual rent received is to be considered and then taxes and repairs paid by tenant, interest on refundable deposits exceeding 3 months, lease premium and any benefit or perquisite collected from the tenant will be added upon.
My query is section 2(ea) specifically excludes residential House property let out for a period of 300 days or more. if that is the case why we are valuing such residential house property which is let out for the entire year when we know that it is not subjected to wealth tax.
03 December 2011
U/s 5 one house is exept regardless of it being self occupied or let out. The valuation comes into place when you own more than one property.
CAclubindia
