28 October 2014
Since none of house is let out, it is residential property and according to S/5(vi) - one house or part of a house or a plot of land belonging to an individual or a Hindu undivided family is exempt from wealth tax.
When you read S/2(ea); it states "assets", in relation to the assessment year commencing on the 1st day of April, 1993, or any subsequent assessment year, means—
(i) any building or land appurtenant thereto (hereinafter referred to as "house"), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty-five kilometres from local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board, but does not include— (1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than 22a[ten] lakh rupees; (2) any house for residential or commercial purposes which forms part of stock-in-trade; (3) any house which the assessee may occupy for the purposes of any business or profession carried on by him; (4) any residential property that has been let-out for a minimum period of three hundred days in the previous year; (5) any property in the nature of commercial establishments or complexes;]
Since none of house let out nor used for the purposes of any business or profession carried on by him etc. S/2(ea) doesnt apply & none of house can be excluded from WT.
CAclubindia
