Wealth tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2011 respected sir,

i hava a residential house that i use for my self resident. its value is 75 lac.is wealth tax applicable for me.

what is exempted limit for wealth tax?

thanking you

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 August 2011 Yes Wealth Tax Applicable.

Wealth tax is payable on net wealth on ‘valuation date’. As per Section 2(q), valuation date is 31st March every year. It is payable by every individual, HUF and company. Tax rate is 1% on amount by which ‘net wealth’ exceeds Rs 30 lakhs from AY 2010-11. (Till 31-3-2009, the limit was Rs 15 lakhs). No surcharge or education cess is payable.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 August 2011 I do not agree with the expert so far as the exemption regarding one house is concerned.

.

In case, this is your only residential house, it is not liable for wealth tax purpose.
.

U/s 5(vi), In the case of Individual and HUF , one house is exempt, of what ever amount it may be.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 August 2011 Thanks Paras Sir for Correction. In case of assessee having only house the same is exempted u/s 5.

In the case of an individual or a Hindu undivided family, a house or a part of house, or a plot of land not exceeding 500 sq. meters in area is exempt. A house is qualified for exemption, regardless of the fact whether the house is self-occupied or let out. In case a house is owned by more than one person, exemption is available to each co-owner of the house [Section 5(vi)]

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 August 2011 Sanjay Bhai- Now you are right.

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