TAXABILITY OF ASSETS UNDER WEALTH TAX

UNDER SEC.2(ea) OF WEALTH TAX ACT, IT SAYS THAT IF A RESIDENTIAL HOUSE HAS BEEN LET OUT FOR A PERIOD OF MORE THAN 300 DAYS IN A YEAR THEN THE SAME SHOULD NOT BE CONSIDERED IN COMPUTATION OF NET WEALTH. BUT IF U GO & SEE VALUATION RULES FOR IMMOVABLE PROPERTY (IT CONSISTS OF BOTH LET OUT & NON LET OUT) IT SAYS THAT EVEN IF THE HOUSE IS LET OUT FOR MORE  THAN 300 DAYS IT IS TAXABLE & A SEPARATE PROCEDURE IS LISTED TO CALCULATE THE VALUE OF THE HOUSE AS ON VALUATION DATE.

MY DOUBT IS

1) SO ALL RESIDENTIAL HOUSES WHETHER LET OUT OR NOT ARE TAXABLE ??

2) IF THEY ARE LET OUT THEN VALUE ON VALUATION DATE IS CALCULATED AS PER VALUATION RULES ??

3) IF THEY ARE NOT LET OUT HOW TO ARRIVE AT VALUE AS ON VALUATION DATE ?? (AS PER VALUATION RULES AGAIN)

Replies (2)

can u be clear please.

You mean to say that Residential Houses are included in computation of net wealth irrespective of the fact that they have been let out for a period of 300 days or not.

if that is the case then the Value on Valuation Date has to be determined as per Valuation Rules Stated in the Act.

 

Kindly Make reference to Sec. also if possible.

IF THE HOUSE IS NOT LET OUT FOR 300 DAYS THE VALUATION RULES WILL APPLY.

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