Wealth tax

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Ravi Kumar Rajgaria (Querist)
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24 April 2012 Our Pvt. Ltd. Company have paid in advance for two flats(seperately located in FY 2011-12. Flats is yet to be hand over to company as these are under construction.

Will these flats treated as an asset for wealth tax for AY 2012-13?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 April 2012 No, under construction flats are not treated as an asset under the Wealth Tax Act.

Ravi Kumar Rajgaria

Ravi Kumar Rajgaria (Querist)
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24 April 2012 Thanks for quick response.

What will be the treatment when both the flats will handover to the company in this FY?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 April 2012 If flats are given to the whole time directors, or whole time employees, drawing salary not exceeding Rs RS. 1000000/ p.a., then these will not be treated as asset.
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