Wealth tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2013 Is there any wealth tax on urban agricultural land i.e. a land where agricultural activities are done but falls within the municipal limits?

Ajay Mishra

Ajay Mishra (Expert)
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06 October 2013 Hi

As per the amended provision, following lands will not be chargeable to wealth-tax:

Land classified as agricultural land in the records of the Government and used for agricultural purposes; or
Land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated; or
Land occupied by any building which has been constructed with the approval of the appropriate authority; or
An unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him; or
Land held by the assessee as stock-in-trade for a period of 10 years from the date of its acquisition

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Ajay Mishra

Ajay Mishra (Expert)
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06 October 2013 For more, you can go to the following link:

http://taxguru.in/income-tax/wealth-tax-agricultural-lands-urban-area.html

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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06 October 2013 “As the wealth tax is levied only on unproductive assets, there was no intention to levy wealth tax on the agricultural land which cannot be termed as unproductive assets,” the Finance Ministry explained after passage of the Finance Bill 2013 in the Lok Sabha amid opposition walkout. The government explained that the taxes were being levied only on urban land and not on agricultural land. Reuters.

It further said that the wealth tax is not leviable on urban land which is “classified as agricultural land in the records of the Government; and used for agricultural purposes”