Wealth Tax - Asset u/s. 2(ea)

This query is : Resolved

Hussain (Querist)
Follow

10 November 2009 Kindly clarify whether the following asset is taxable under wealth tax with refernce to relevant cas law or section :

1. Residential property under construction as the end of F.Y.

2. Residential Property purchased in Feb 2008 - immediately let out - For the F.Y E. 31.03.2008 - will the property be chargeable to wealth tax .

3.Residential Property [Vacant] purchased at Rs. 50 Lakhs -Financed through a loan of Rs. 35 Lakhs from a Friend and 15 Lakhs from own capital - what will be the amount chargeable .

Rajnish

Rajnish (Expert)
Follow

10 November 2009 Dear Hussain Your reply
1. Residential property under construction can not be regarded as Building. Hence not be taxable. HOWEVER LAND WILL ATTRACT WEALTH TAX IF FALL UNDER URBAN LAND.

2. Residential property be regarded as assets and hence be taxable. since it is not let out for period more than 300 days.

3. Residential property will be chargeable to wealth tax. However Rs 35 lakhs deductible from value of assets.

Hussain

Hussain (Querist)
Follow

11 November 2009 Thankyou Sir, But kindly cite the relevant section or case law - for my reference