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Chargeability of urban land in wealth tax

702 views 2 replies

Gaurish Kerkar

CA Practice

24 Points Posted on 01 January 2013

Dear All

I have 2 queries:

1. Assessee has undivided share in Ancestral property. No part of land can be sold without consent of other joint owners. Is such land also taxable as wealth? The right to transfer is not with assessee, hence can it be caliemd exempt?

2. Can anyone provide Notification no. 871(E) dt 9-11-1993 [205 ITR (St) 1] which contains notified Urban land?

Replies (2)

Hitesh Khanna

Accounting & Finance Taxation Company

839 Points Posted on 01 January 2013

Does this land is a part of the property under HUF ??

SAYED MUJEEB

ACCOUNTANT

101 Points Posted on 01 January 2013

Originally posted by : Gaurish Kerkar

For the purposes of this Act, the holder of an impartible estate shall be deemed to be the individual owner of all the properties comprised in the estate.]

i think it is chargeable to tax.

Arban land

includes

land with in jurisdiction of a Muncipality or contenment board with population of not less then 10000 as per latest published census prior ot valuation date or

any area situated within 8 kms from limits of such municipality or cantonment board as noified by the central government.

urban land excludes:

a) urban land on which construction of a building is not permitted under any law.

b) land accupied by any building constructed with the approval of appropriate autority.

c) land held for industrial purposes for a period of 2 years form the date of acquisition

d) land held by the assessee as stock-in-trade for a period of 10 year from date of acquisition.