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Wealth tax
my client had two houses one is self occupied with 1000 Sq yards and another with 400 Sq yards is the second house is taxable under wealth tax???
Replies (3)
Exemption for a house or part of house is exempt provided the person is individual or HUF. Hence if he holds multiple houses or land plot not exceeding 500 square metres in area, he can claim exemption for the highest valued house or plot.(As per section 5(vi) of wealth tax)
Your client must be individual or HUF only and not a company for above mentioned condition.
The condition of not exceeding 500 Sq yards should be calculated combined or individual house
The condition is of plot of land not exceeding 500 square metres in area and not the house.
As Section 5 (vi) clearly states
a. house or part of house or;
b. a plot of land not exceeding 500 sq metres in area.
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