Wealth tax

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This query is : Resolved

kunal (Querist)

02 January 2013 sir,
if building is under construction on industrial plot...
can we claim deduction of loan outstanding on account of construction of building???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

02 January 2013 IF UNDER CONSTRUCTION BUILDING IS AN ASSET UNDER THE WEALTH TAX ACT, THEN YOU CAN CLAIM DEBTS OWED AGAINST IT. OTHERWISE NOT. TO MY VIEW, PLOT IS AN ASSET IN SOME CASES BUT UNDER CONSTRUCTION BUILDING INCLUDING THE PLOT IS NOT TREATED AS AN ASSET .

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kunal

kunal (Querist)

02 January 2013 ok sir..
if mr.A accquire industrial plot on 01.01.2008. construction of factory is started on 30.06.2008 and is completed on 31.12.2011.

now, for the valuation date 31.03.2008 & 31.03.2009 land including building under construction is exempt(exemption availabe upto 2 years)

is plot of land is taxable as on 31.03.2010??(as construction not completed)

kunal

kunal (Querist)

02 January 2013 sir, please reply

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

02 January 2013 When construction work starts on a plot , for W T purpose plot will lose its identity and will not be treated as an asset.

.

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kunal

kunal (Querist)

02 January 2013 thank you very much sir

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