Wealth Tax
This query is : Resolved
28 December 2010
Is wealth tax payable on agriculture land? If yes please suggest some case laws?
28 December 2010
No. wealth tax is not payable on Agricultural land. The agricultural land is not an asset chargeable to wealth-tax because section 2(ea) is an exclusive definition and it does not include agricultural land.
28 December 2010
Hi
The assets liable to wealth tax as per the definition given in section 2(ea) of the Wealth Tax Act are as under :
(1) Any building or land appurtenant thereto which shall include :
commercial buildings;
residential buildings;
any guest house;
a farm house situated within 25 kilometres from the local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board.
However, the following buildings will not be included to assets:
a house meant for residential purposes 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 Rs. 5,00,000/-.
any house for residential or commercial purposes which forms part of stock-in-trade;
any house which the assessee may occupy for the purposes of any business of profession carried on by him.
The following buildings shall also not be an asset w.e.f. A.Y. 1999-2000:
any residential property that has been let out for a minimum period of 300 days in the previous year.
any property in the nature of commercialestablishments or complexes.
(2) Motor Cars (excluding those used by the assessee in the business of running them on hire or as stock-in-trade).
(3) Jewellery, bullion, furniture, utensils or any other, article made wholly or partly of gold, silver, platinum or any other previous metal or any alloy containing one or more of such precious metals (excluding those held as stock-in-trade by the assessee). Jewellery includes:
ornaments made of gold, silver, platinum or any other precious metal of any alloy containing one or more of such precious metals, whether or not" containing any precious or semi-precious stones, and whether or not set in any furniture, utensils or other article or worked or sewn into~any wearing apparel;
precious or semi-precious stones, whether or not set in any furniture, utensils or other articles or worked or sewn into any wearing apparel.
For the removal of doubts it has been clarified by explanation 2 to section 2(ea) that the term jewellery does not include the Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government.
(4) Yachts, boats and aircrafts (excluding those used by the assessee for commercial purposes).
(5) Urban land; "Urban Land" means land situated :
in any area which is comprised within the jurisdiction of a local authority and which has a population of not less than ten thousand according to the last proceeding census of which the relevant figures have been published before the valuation date; or
any area within such distance, not being more than eight kilometres from the local limits of a local authority as the Central Government may, having regard to the extent, and scope for urbanisation of that may, and other relevant considerations, specify in this behalf by notification in the Official Gazette.
However, the following urban land shall not be included in assets;
land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated;
land occupied by any building which has been constructed with the approval of the appropriate authority;
any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him.
land held by an assessee as stock-in-trade for a period of five years from the date of its acquisition by him. (Ten years w.e.f. A.Y. 1999-2000).
Note: Agricultural land situated in urban area is not liable to wealth-tax.
(6) Cash in hand;
Regards
The assets liable to wealth tax as per the definition given in section 2(ea) of the Wealth Tax Act are as under :
(1) Any building or land appurtenant thereto which shall include :
commercial buildings;
residential buildings;
any guest house;
a farm house situated within 25 kilometres from the local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board.
However, the following buildings will not be included to assets:
a house meant for residential purposes 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 Rs. 5,00,000/-.
any house for residential or commercial purposes which forms part of stock-in-trade;
any house which the assessee may occupy for the purposes of any business of profession carried on by him.
The following buildings shall also not be an asset w.e.f. A.Y. 1999-2000:
any residential property that has been let out for a minimum period of 300 days in the previous year.
any property in the nature of commercialestablishments or complexes.
(2) Motor Cars (excluding those used by the assessee in the business of running them on hire or as stock-in-trade).
(3) Jewellery, bullion, furniture, utensils or any other, article made wholly or partly of gold, silver, platinum or any other previous metal or any alloy containing one or more of such precious metals (excluding those held as stock-in-trade by the assessee). Jewellery includes:
ornaments made of gold, silver, platinum or any other precious metal of any alloy containing one or more of such precious metals, whether or not" containing any precious or semi-precious stones, and whether or not set in any furniture, utensils or other article or worked or sewn into~any wearing apparel;
precious or semi-precious stones, whether or not set in any furniture, utensils or other articles or worked or sewn into any wearing apparel.
For the removal of doubts it has been clarified by explanation 2 to section 2(ea) that the term jewellery does not include the Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government.
(4) Yachts, boats and aircrafts (excluding those used by the assessee for commercial purposes).
(5) Urban land; "Urban Land" means land situated :
in any area which is comprised within the jurisdiction of a local authority and which has a population of not less than ten thousand according to the last proceeding census of which the relevant figures have been published before the valuation date; or
any area within such distance, not being more than eight kilometres from the local limits of a local authority as the Central Government may, having regard to the extent, and scope for urbanisation of that may, and other relevant considerations, specify in this behalf by notification in the Official Gazette.
However, the following urban land shall not be included in assets;
land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated;
land occupied by any building which has been constructed with the approval of the appropriate authority;
any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him.
land held by an assessee as stock-in-trade for a period of five years from the date of its acquisition by him. (Ten years w.e.f. A.Y. 1999-2000).
Note: Agricultural land situated in urban area is not liable to wealth-tax.
(6) Cash in hand;
Regards
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
- Traces Portal
- U/s.234E late fee- balated filing the TDS returns
- Capital Gain Incidents
- Rectification of TDS return - Sale of property
- Clubbing of Income - Minor
- Cheque bounce intimation letter
- Applicability of corporate governance provisions as per the SEBI LODR
- REVERSAL PROPORTIONATE ITC
- Conversion of director loan to equity
- RCM AND NORMAL TAX INVOICE
- URD SEPARATE INVOICE
- FORM 121 UNDER NEW INCOME TAX ACT 2025
- GED Exam Help
- ERROR IN DEPRECIATION CALCULATION IN PREVIOUS YEAR COMPANY'S BOOKS
- Regarding Individuals Retuned to India and Resident currently
- Minor Aadhar card cancelled
- Query regarding applicability of UDIN on MCA forms signed using DSC by a Chartered Accountant
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Spice form, ? mark comes in address
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
