Wealth tax
This query is : Resolved
18 October 2014
Dear Sir,
One Individual have two house
1. Rs. 50 lakh - Exclusively for residential purpose.
2. Rs. 70 lakh - he used to go there only on sundays .
Weather wealth tax is payable or not ?
Read with section 2(ea) and 5(vi) .
Thanks in advance for ur kind attention.
One Individual have two house
1. Rs. 50 lakh - Exclusively for residential purpose.
2. Rs. 70 lakh - he used to go there only on sundays .
Weather wealth tax is payable or not ?
Read with section 2(ea) and 5(vi) .
Thanks in advance for ur kind attention.
18 October 2014
Hi
Out of 2 occupied house, u can claim exemption for only 1 house, Where is doubt?
Out of 2 occupied house, u can claim exemption for only 1 house, Where is doubt?
Message likes :
1 times
28 October 2014
Plz read both the sections, one is exempt and one is not considered as asset at all.
Message likes :
1 times
28 October 2014
Since none of house is let out, it is residential property and according to S/5(vi) - one house or part of a house or a plot of land belonging to an individual or a Hindu undivided family is exempt from wealth tax.
When you read S/2(ea); it states "assets", in relation to the assessment year commencing on the 1st day of April, 1993, or any subsequent assessment year, means—
(i) any building or land appurtenant thereto (hereinafter referred to as "house"), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty-five kilometres from local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board, but does not include—
(1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than 22a[ten] lakh rupees;
(2) any house for residential or commercial purposes which forms part of stock-in-trade;
(3) any house which the assessee may occupy for the purposes of any business or profession carried on by him;
(4) any residential property that has been let-out for a minimum period of three hundred days in the previous year;
(5) any property in the nature of commercial establishments or complexes;]
Since none of house let out nor used for the purposes of any business or profession carried on by him etc. S/2(ea) doesnt apply & none of house can be excluded from WT.
When you read S/2(ea); it states "assets", in relation to the assessment year commencing on the 1st day of April, 1993, or any subsequent assessment year, means—
(i) any building or land appurtenant thereto (hereinafter referred to as "house"), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty-five kilometres from local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board, but does not include—
(1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than 22a[ten] lakh rupees;
(2) any house for residential or commercial purposes which forms part of stock-in-trade;
(3) any house which the assessee may occupy for the purposes of any business or profession carried on by him;
(4) any residential property that has been let-out for a minimum period of three hundred days in the previous year;
(5) any property in the nature of commercial establishments or complexes;]
Since none of house let out nor used for the purposes of any business or profession carried on by him etc. S/2(ea) doesnt apply & none of house can be excluded from WT.
Message likes :
1 times
28 October 2014
Thanks Sirji..............
I Was thinking like one is Not Asset at all & one is exempt from tax.
I Was thinking like one is Not Asset at all & one is exempt from tax.
28 October 2014
u/s 2(ea) a house used for residential purpose is a taxable asset and there is no exclusion for it.
So in your case w.r.t. 2 residential house owned by an assessee, for one house you can claim exemption u.s/5(vi)
So in your case w.r.t. 2 residential house owned by an assessee, for one house you can claim exemption u.s/5(vi)
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 2 Short Term gain & Long term gain
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Difference in tax comparison report
- ITR 1: Details for showing Exempt Income
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
