11 December 2012
Under Wealth Tax Act there are certain Exempt assets. Mr.x is person of Indian origin, He used to resided in England. On 31st March 2011, He return to India intending not to go England again as well He started his Business in India. He Purchased one Plot in India on 01/10/1997. Is this plot of land is exempt asset for AY 2011-12???
11 December 2012
Although exemption is available for a period of 7 successive years from the year next the date on which he returned India. But in your case the EXEMPTION IS NOT AVAILABLE. Because the assets should be acquired by him out of money sent from abroad or his NRE' account, WITHIN ONE YEAR FROM THE DATE OF HIS RETURN TO INDIA. Read section 5 of wealth tax.
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