Dear Friends is let out flat chargeable to wealth tax?
Anumanchipalli Sathikonda
(Tax Consultant)
(1349 Points)
Replied 20 July 2009
Mr.Gopala Krishnan
As per the provisions of section 2(ea) (i)(4) of Wealth Tax Act, 1957 any residential property that has been let out for a minimum period of 300 days in the previous year is not regarded as an asset for the purpose of Welath Tax. An asset which is regarded as an asset need not be included in the net wealth of the assessee. If the property cited by you comlies with the conditions laid down in section 2(ea)(i)(4) it is not an asset. Hence the value of the impugned asset need not be included in the net wealth.
Best Wishes
Sathikonda
CAclubindia
