Wealth tax - vacant land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2013 I purchased one vacant plot ( 130 dec/ 1.3 acre) located under municipality in the year 1989. I am sr citizen and now wants to dispose off the said land. The estimated amount will be around 45 lakhs. Though Govt valuation is around 70 lakhs. do I have to pay any wealth tax ? I know i have to pay long term capital gain tax. If I have to pay how to calucate the amount. Shall appreciated any can guid me.
regards

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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30 July 2013 pls mention the purpose for which you had purchased this land.

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2013 for teak plantation purpose

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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30 July 2013 means for business purpose or for personal use? pls clearify your activities and your business also????

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2013 personal use, no business activities, retired govt official

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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30 July 2013 if you had purchased it for personal use and if you had shown your self occupied property means your current house as exemption then u need to show this as your asset under sec 2(ea) as an asset and u need tg pay 1% if the value exceeds rs 30 lacs.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2013 sorry for the delay to reply. I had not shown as self occupied. which authority i should declear my above mentioned asset? Till date I havn't declear to IT authority but declear the same to my employer before retirement.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 August 2013 u need to fill wealth tax return to same officer who is your jurisdictional officer for income tax purpose and disclose the assets.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2013 thanks, do I need to intimate IT officer in my Juricdition Prior or after the sale of the said land pl advise

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 August 2013 no, just file the return as soon as possible after consulting ca.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2013 Do I have to pay wealth tax now in order to file the return? pl advise

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 August 2013 i have said that you need to pay 1% wealth tax if after aggregating all your assets including this one exceeds Rs.30,00,000.

yes you need to file return also.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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02 August 2013 Open land is not exempted from payment of wealth tax provided it is an agricultural land. If it is agricultural land then no.

At the same time if all other assets including the open land is above the minimum taxable limit under wealth tax then yes you have to pay the WeALTH TAX AT MARKET VALUE OF THE PLOT.