Wealth tax on second property acquired during the year
The assessee has purchased his second house during the year, say on 1st July and lets out the property from 1st July to 31st March; i.e. for 273 days, which is less than 300 days.
However, since the property has been let out for the entire duration that it was under the assessee's ownership during the previous year, will wealth tax be applicable on this second house?
As I understand from a plain reading of the Act and the rules, a residential property is exempt from wealth tax if it is let out for more than 300 days during the previous year. Are there any rules / notifications / circulars / case laws that explicitly deal with the above situation?
Thanks in advance for your help !
CAclubindia
