Wealth tax query

An assessee owns  two houses in different cities. Of the two residential properties, one (of lower market valuation) is self-occupied and the other (of higher valuation) has been given out on rent.  For purposes of computing the wealth tax payable and filing the WT return, should it be on the basis of the actual reality, or can any of the houses be considered as self-occupied and exempt? If this option is there, can this also be changed from year to year depending upon what is beneficial? Is this desirable or can it lead to other complications? Appreciate views of the experts. 

Note: Just to clarify, the house has been on rent during the year for less than 300 days. 

Replies (1)

Mr.bkp

There is an amendment to Section 5 of Wealth Tax Act,  by the Finance (No.2) Act, 1998 with effect from 1-4-1999 i.e from the assessment year 1999-2000 onwards.  As per this amendment  a house is qualified for exemption, regardless of the fact whether the house is self-occupied or let out. 

You know that if the house is let out for less than 300 days it is not qualified for exemption.

Hope you have got the clarification

Best Wishes

Sathikonda

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