Urgent wealth tax implication

528 views 2 replies

CA Rahul Sharma

Asisstant Manager Finance

697 Points Joined February 2008

I hav a query about wealth tax implication. Assesse is already assessing as a wealth tax assessee, owning assets above 30 lakhs including 3 house properties now he has constructed new house in jan 2013 ie in fy 2012-13 and let it out on rent. as per wealth tax act a house given on rent for 300 days or more is not included in definition of assets. Now whether this new house is to be included in wealth or not. that is the matter,please frnd give ur views/advice and whether there is any law/rule/supporting for that thanks in advance......

Replies (2)

CA JATINDER KAPOOR

JOB

305 Points Joined April 2011

wealth tax implication starts on valuation date i.e 31.03.2013 and if on that date new house is fully constructed and letout then this house should be included in his wealth.

But he can claim exemption u/s 5(VI) of wealth tax act under any of house owned which have higher value.

CA. Kuldeep Singhi

Entrepreneur

424 Points Joined June 2011

Ya Wealth tax will apply on this house as ,as on 31.03.13 the house will be rented only for 90 days or less which falls short of 300 days but if its value is higher than the other three houses than he should claim expemption u/s 5(vi) in respect of this house.

Thanks & Regards,

Kuldeep Singhi