Wealth tax
Querist : Anonymous
not a single process done by the assessee on this agriculture land from 2 years.
Is it taxable under wealth tax or not?
Querist : Anonymous
---
### ✅ **Wealth Tax Applicability on Agricultural Land**
Under the **Wealth Tax Act, 1957** (now abolished w\.e.f. A.Y. 2016-17), **urban land** was considered an asset and hence taxable. Agricultural land **was generally exempt**, but **not always**.
---
### 📌 In Your Case:
* **Land is within 8 km of a municipality area** ✅
➤ This **qualifies it as “urban land”** under Wealth Tax Rules.
* **No agricultural activity done in 2 years** ✅
➤ This indicates **the land is not being used for agricultural purposes**, and **may not qualify for agricultural exemption**.
---
### 🔍 As per Section 2(ea) of the Wealth Tax Act:
> *“Urban land” means land situated within 8 km of a municipality, and not being used for agriculture in the preceding two years, is taxable as an asset.*
So yes, if the land:
* Is within 8 km of a municipality, and
* Not used for agricultural purposes for 2 years
➡ **It will be considered urban land** and is **taxable under Wealth Tax**.
---
### 🧾 Taxable Value:
The land should be valued as per **Rule 3 of Schedule III** of the Wealth Tax Act — usually based on **Fair Market Value**.
---
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