Hi all..
As per Wealth tax act if a residential property was let out for more than 300 days then that is exempted u/s 2(ea), so if any one purchases a house property in the month of july and let out for the rest of the year,in such a case whether he can avail any exemption or not?
Yes he can avail exemption.
Cna u plz quote the sec. no and any ref if u hab..
Here the intention of legislature has to prevail above the words used in the legislature.
It has been deemed in the Wealth Tax Act that Out of the 365/366 days of the whole year the property must be let out by the owner for more than 300 days. In such cases we must apply negative test also. If the property was not let out for more than 65/66 days then it can be treated as an asset.
In this particular case you have said that the property has been let out by the assessee throughout the PERIOD OF HIS OWNERSHIP.
But can you say that the property was not let out for more than 65/66 days by the owner. Since negative test fails here - it will be an exempted asset.
CAclubindia
