Wealth tax liability

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This query is : Resolved

anckoora (Querist)

24 January 2015 RESPECTED ALL

I WOULD LIKE YOU TO GIVE ME YOUR GUIDANCE ON FOLLOWING TWO POINTS :

(1) MR. A, A RESIDENT INDIVIDUAL HAS PURCHASED A RESIDENTIAL HOUSE WORTH RS.30 LACS AND THIS PROPERTY IS REFLECTED IN HIS BALANCE SHEET UNDER 'FIXED ASSETS'. HE ALSO FURTHER BUYS ONE MORE FLAT FOR RS.30 LACS. THIS SECOND FLAT IS ALSO REFLECTED IN HIS BALANCE SHEET UNDER 'FIXED ASSET' HE IS NOT HAVING OTHER PROPERTY IN TERMS OF JEWELLERY , SHARES ETC.
NOW, WILL HE BE LIABLE TO PAY WEALTH TAX - AS HE OWNS PROPERTY OF MORE THAN 50 LACS ? IF YES, HOW MUCH HE WILL HAVE TO PAY ? IF NO, PLEASE ELAORATE.

(2)MR. B STAYS WITH MR.A (IN THE HOUSE BOUGHT BY ME.A) WHO IS HIS BROTHER. MR. B HAS HIS BALANCE SHEET SHOWING A HOUSE PURCHASED AT RS.60 LACS. THIS HOUSE IS NOT OCCUPIED BY HIM.MR. B HAS NO ANY OTHE RPROPERTY.
SO, WILL HE LIABLE TO PAY WEALTH TAX AS VALUE OF ASSET IS MORE THAN 50 LACS ?

THANKS IN ADVANCE.

ANKURBHAI

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

28 January 2015 (1) one house used for residential purposes is exempt u/s 5(vi) of wealth tax act. So residential house will be exempt while flat needs to be taken into account.

(2) In case of Mr B since he has only one house this can be claimed as exempt u/s 5(vi).

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