Definition of guest house under wealth tax

Hii

Under the wealth tax Act only defination of farm house u/s 2(ea)(1) is given i.e an house within 25 km from ANY municipal party and population is more than 10000 

So other than the above will be consider as guest house 

hope it is clear to you

Originally posted by : DIPESH VASA Helping Hand!!!!!
	Hii Under the wealth tax Act only defination of farm house u/s 2(ea)(1) is given i.e an house within 25 km from ANY municipal party and population is more than 10000  So other than the above will be consider as guest house  hope it is clear to you

Thanks for your attention but,

as you said that "OTHER THAN ABOVE" that means

either those house which are beyond 25 km from ANY municipal party and population is more than 10000

OR..........

 within 25 km from ANY municipal party and population is less than 10000 ??

then what will be relivance of defition of Farm House ?? So, Give ur reply in detail.

I think u r confusing

THORETICALLY

let me take an example to under stand it THORETICALLY

Farm House A is situated say 30 km from kolkata (Population. >10000)

& 6km away from Howrah (Population <10000)

Now 1st we hv to see population

since population of howrah is less than 10000 then we will just ignore the data as if it was never provided to us

population of kol greater than 10000 NOW WE hv to check whether FARM HOUSE is within 25 km or not

since NOT within 25km (since 35 km)

thereforenot an asseat for Wealth Tax i.e. NO Wealth Tax

PRACTICALLY & CONCEPTUALLY

Now let us get  into some real world

Whats the logic behind excl farm house >25km ?

Farm House means a House constructed on an AGRICULTURAL LAND

Recall Cap gains, "ANY AGRI LAND SITUATED OUTSIDE 8KM IS NOT A CA"

same here but now its 25KM

Both are incentive provided by Govt

YOUR CONFUSION !!!

Now u just hv to check whether ur farm house is within 25 KM of ANY   Municipality (Population>25000km or NOT) if not then HURAYYYYYYYYY No Wealth Tax

In real world scenerio, u just hv to check whether ur farm house is within 25 KM of ANY   Municipality (Population>10000km or NOT) if not then HURRAYYYYYYY NO CAP GAINS on transfer of such Capital Asset [since not even a CAPITAL ASSET as per section 2(14)]

THERE ARE MANY ADDITINAL TECHICAL POINTS WHICH I M NOT DISCUSSING HERE

I HOPE ur query is now resolved.