S 2(ea) of W. T. Act

Wealth tax is levied on the value of assets. The term “assets” is defined under Section 2(ea) of the Wealth-tax Act. Hence, wealth tax is levied only on those properties which are covered in the definition of the term “assets” as defined in the Wealth-tax Act.

Following items are covered in the definition of the term “assets”.

Any building or land appurtenant thereto, whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise.

It will also include a farm house situated within 25 kilometers from local limits of any municipality or a Cantonment Board.

However, following buildings or land appurtenant thereto are not included in this category :

A house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than Rs. 10,00,000.

Any house (may be residential house or used for commercial purposes) which forms part of stock-in-trade of the taxpayer.

Any house occupied by the taxpayer for the purposes of any business or profession carried on by him.

Any residential property which has been let-out for a minimum period of 300 days in the previous year.

Any property in the nature of commercial establishments or complexes.